Market Consolidation of Electronic Distributors as Heavyweights Tech Data and SYNNEX Merge

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By Abdullah Haider | 2Q 2021 | IN-6198

 

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A merger has taken place to create a new market leader amongst electronic distributors; the firms are SYNNEX and Tech Data, who agreed in principle to merge in March 2021. The combined firepower of these two firms is expected to displace Ingram Micro from its market leadership position. The merger of these two firms (subject to a vote amongst SYNNEX shareholders and regulatory approval) is expected to lead to a combined firm with revenues expected to be well above US$50 billion per annum, while pro forma revenues are expected to be close to US$57 billion. This consolidation comes amidst an industry trend of taking electronic distributors private: Tech Data went private in 2019, with Ingram Micro following suit in 2020. This merger is the most significant news since the wave of privatization. The global footprint of the combined entity is significant, as Synnex-Tech Data concentrated in the North American, Latin American, and the European market, as well as the Asia-Pacific region. The two firms view this merger as important because enterprise customers of both Tech Data and SYNNEX seek to embark o…

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