Synnex
| Company type | Public |
|---|---|
| Industry | Information technology, IT distribution, Business process outsourcing |
| Founded | 1980 |
| Founder | Robert T. Huang |
| Defunct | September 1, 2021 |
| Fate | Merged with Tech Data to form TD Synnex |
| Headquarters | Fremont, California , United States |
Area served | Worldwide |
Key people | Dennis Polk (CEO until separation), Rich Hume (post-merger CEO of TD Synnex) |
| Products | IT supply chain management services, business process outsourcing, contract manufacturing |
Number of employees | Significant employer in Greenville, South Carolina (exact number not specified) |
Synnex was a United States-based multinational corporation delivering information technology (IT) solutions to corporate clients. Established in 1980 by entrepreneur Robert T. Huang and headquartered in Fremont, California, the firm focused on IT supply chain management services catering to original equipment manufacturers, software publishers, and reseller networks. It eventually combined with rival Tech Data to create TD Synnex.
History
Initially operating as a distributor of technology hardware, Synnex broadened its scope to include business process outsourcing and contract manufacturing, collaborating with providers of IT systems, peripherals, components, software, and networking devices. It stood as a significant employer in Greenville, South Carolina. In 2009, the company acquired Jack of All Games from Take-Two Interactive. The next year, it purchased the managed business solutions unit of e4e, an IT services firm based in Bangalore, India.
By 2012, through its subsidiary Hyve Solutions, Synnex formed partnerships with IBM and Zettaset to offer Hadoop-based analytics platforms aimed at small and medium enterprises. In 2013, it expanded further by acquiring IBM's global customer care business process outsourcing (BPO) operations.
In June 2017, Synnex purchased Westcon-Comstor's North and Latin American divisions along with a 10% equity stake in Westcon International from Datatec for roughly $800 million. This deal broadened its international footprint and increased its share in the IT distribution market.
On 28 June 2018, Synnex announced plans to acquire Convergys Corporation for $2.43 billion to merge it with its subsidiary Concentrix. The transaction was finalized on 5 October 2018, bolstering its portfolio of customer care services.
In January 2020, CEO Dennis Polk revealed intentions to separate SYNNEX and Concentrix into distinct publicly traded entities to better concentrate on their individual business strategies. This separation was completed on 1 December 2020.
In July 2021, Synnex encountered a cybersecurity breach when the Republican National Convention's servers were compromised through its network, possibly connected to the Kaseya VSA ransomware incident.
On 22 March 2021, Synnex declared a $7.2 billion merger agreement with Tech Data, where Synnex shareholders would hold 55% of the merged organization. MiTAC Holdings Corp., which owned approximately 17% of Synnex shares as of January 2021, endorsed the deal. This strategic consolidation established a dominant global IT distribution entity with increased market influence and competitiveness.
Merger with Tech Data
The merger between Synnex and Tech Data was completed on September 1, 2021, resulting in the formation of TD Synnex. The combined company generated revenues of $59.8 billion, surpassing Ingram Micro as the largest IT distributor worldwide. Leadership was assumed by former Tech Data CEO Rich Hume, enhancing both global reach and market share. This alliance significantly augmented TD Synnex's competitive position and growth prospects within the IT distribution sector.