Synnex and Tech Data do not develop IT solutions, but they distribute, integrate, and service the technology developed by other companies.
The combined company will generate US$57 billion in annual revenue, US$10 billion more than its rival Ingram Micro.
Analysts say the merger is aimed at capitalizing on the growing demand for new technologies, such as cloud, data analytics, and IoT.
“The combined company will also benefit from significant financial strength to invest in its core growth platform as well as next-generation cybersecurity, cloud, data, and IoT technologies, which are experiencing explosive growth due to work from home and return to office trends,” says Rich Hume, Tech Data CEO.
The combined company will have more than 200,000 products and solutions on its portfolio and operate in more than 100 countries around the world through as many as 1,500 vendors.
As per the agreement, Apollo Global Management, the owner of Tech Data, will own a 45% stake in Synnex, and Rich Hume will take charge of leading the merged company.
Synnex became free to focus on the IT distribution business after it spun off Concentrix, a customer experience behemoth, after merging it with Convergys.