Synnex to merge with Tech Data in $7.2 billion PE deal

IT solutions firm Synnex Corp said on Monday that it will merge with peer Tech Data, owned by funds affiliated to Apollo Global Management, in a deal worth about $7.2 billion, including debt.

Shares of Synnex jumped over 11% in premarket trade.

Apollo Funds will receive 44 million shares of Synnex common stock and the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion.

Upon closing of the deal, expected in the second half of 2021, Synnex shareholders will own about 55% of the combined company, while Apollo Funds will own about 45%.

Tech Data was taken private by Apollo Global Management in 2020 in a deal valued at about $6 billion.

Synnex earlier separated into two publicly listed companies, Synnex Technology Solutions and Concentrix.