MiTAC Holdings Corp (神達控股) yesterday announced a US$7.2 billion merger between its investment company, Synnex Corp, and information technology distributor Tech Data, which would create a world-leading information technology (IT) distributor if approved.
Synnex and Tech Data, both based in the US, have entered into a definitive merger agreement, under which the two companies would combine in a transaction valued at about US$7.2 billion, including net debt, Taoyuan-based MiTAC said.
“The combined company, with about US$57 billion in estimated pro forma annual revenue, and a team of over 22,000 associates and colleagues, will provide customers and vendors with expansive reach across products, services and geographies to accelerate technology adoption,” MiTAC said in a statement on its Web site.
Photo: Vanessa Cho, Taipei Times
If the deal closes, Synnex shareholders would own about 55 percent of the combined entity, with Apollo Global Management Inc, which bought Tech Data in June last year, owning about 45 percent, the statement said.
The transaction is expected to be completed in the second half of this year, subject to the satisfaction of customary closing conditions, including approval by Synnex stockholders and regulatory approval, it said.
Synnex president and chief executive officer Dennis Polk said the company is excited to partner with a world-class industry leader such as Tech Data and believes that the move would benefit all stakeholders.
“This transaction allows for accelerated revenue and earnings growth, an expanded global footprint and the ability to drive significant operating improvements, while continuing to create shareholder value,” Polk said.
Through the merger, Synnex and Tech Data are expected to create the world’s largest IT distributor, which could generate US$100 million of optimization and synergy benefits in the first year after the closing, and about US$200 million by the end of the second year, media reports have said.
“The combined company will have a global footprint that serves more than 100 countries across the Americas, Europe and the Asia-Pacific region, and a broad, diversified portfolio of more than 200,000 product and solutions offerings,” Synnex said.
“This meaningful scale will provide increased value and purchasing efficiencies to the combined company’s 150,000 customers and more than 1,500 vendors, and enable it to accelerate technology adoption and attract the world’s most innovative OEMs [original equipment manufacturers],” said the US firm, which provides business-to-business IT services.
COMPETITION: AMD, Intel and Qualcomm are unveiling new laptop and desktop parts in Las Vegas, arguing their technologies provide the best performance for AI workloads Advanced Micro Devices Inc (AMD), the second-biggest maker of computer processors, said its chips are to be used by Dell Technologies Inc for the first time in PCs sold to businesses. The chipmaker unveiled new processors it says would make AMD-based PCs the best at running artificial intelligence (AI) software. Dell has decided to use the chips in some of its computers aimed at business customers, AMD executives said at CES in Las Vegas on Monday. Dell’s embrace of AMD for corporate PCs — it already uses the chipmaker for consumer devices — is another blow for Intel Corp as the company
MediaTek Inc (聯發科) yesterday said it is teaming up with Nvidia Corp to develop a new chip for artificial intelligence (AI) supercomputers that uses architecture licensed from Arm Holdings PLC. The new product is targeting AI researchers, data scientists and students rather than the mass PC market, the company said. The announcement comes as MediaTek makes efforts to add AI capabilities to its Dimensity chips for smartphones and tablets, Genio family for the Internet of Things devices, Pentonic series of smart TVs, Kompanio line of Arm-based Chromebooks, along with the Dimensity auto platform for vehicles. MeidaTek, the world’s largest chip designer for smartphones
TECH PULL: Electronics heavyweights also attracted strong buying ahead of the CES, analysts said. Meanwhile, Asian markets were mixed amid Trump’s incoming presidency Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday closed at a new high in the wake of a rally among tech stocks on Wall Street on Friday, moving the TAIEX sharply higher by more than 600 points. TSMC, the most heavily weighted stock in the TAIEX, rose 4.65 percent to close at a new high of NT$1,125, boosting its market value to NT$29.17 trillion (US$888 billion) and contributing about 400 points to the TAIEX’s rise. The TAIEX ended up 639.41 points, or 2.79 percent, at 23,547.71. Turnover totaled NT$406.478 billion, Taiwan Stock Exchange data showed. The surge in TSMC follows a positive performance
FUTURE TECH: Nvidia CEO Jensen Huang would give the keynote speech at this year’s Consumer Electronics Show, which is also expected to highlight autonomous vehicles Gadgets, robots and vehicles imbued with artificial intelligence (AI) would once again vie for attention at the Consumer Electronics Show (CES) this week, as vendors behind the scenes would seek ways to deal with tariffs threatened by US president-elect Donald Trump. The annual Consumer Electronics Show opens formally in Las Vegas tomorrow, but preceding days are packed with product announcements. AI would be a major theme of the show, along with autonomous vehicles ranging from tractors and boats to lawn mowers and golf club trollies. “Everybody is going to be talking about AI,” Creative Strategies Inc analyst Carolina Milanesi said. “From fridges to ovens
RSS