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Tech Data

From Alfawiki
Tech Data Corporation
Company typePublic (until 2020)
IndustryInformation technology distribution
FoundedNovember 1, 1974; 52 years ago (1974-11-01) in Clearwater, Florida, United States
FounderEdward C. Raymund
DefunctSeptember 1, 2021 (2021-09-01)
FateMerged with Synnex to form TD Synnex
Headquarters
Clearwater, Florida
,
United States
Area served
Worldwide
Key people
Steven A. Raymund (former CEO), Patrick Zammit (CEO of successor TD Synnex as of 2024)
ProductsIT products and services distribution, logistics solutions, value-added services
ParentApollo Global Management (2020–2021)
Websitewww.techdata.com

Tech Data Corporation was a multinational distributor based in the United States, focusing on IT products and services, with its headquarters located in Clearwater, Florida. It combined operations with rival Synnex to create TD Synnex, where Synnex retained a 55% ownership share. Tech Data provided a broad array of product offerings, logistics solutions, and value-added services that supported technology manufacturers and resellers such as Google, Apple, Cisco, Dell, Hewlett Packard Enterprise, IBM, Lenovo, Microsoft, and VMware in delivering IT solutions.

Recognized as one of the largest global distributors in the IT sector, Tech Data reported $36.8 billion in net sales for the fiscal year 2018. The company was ranked 83rd on the 2018 Fortune 500 list and earned a spot among Fortune’s "World's Most Admired Companies," underscoring its significant market presence and sustained growth within technology distribution.

History

Established in November 1974 in Clearwater, Florida by Edward C. Raymund, Tech Data Corporation originally focused on supplying data processing equipment for mini and mainframe computers. In 1983, leadership transitioned to Edward’s son, Steven A. Raymund, who steered the company from being a reseller to becoming a comprehensive national distributor of personal computer products.

Steven A. Raymund took over as CEO in 1986, the same year Tech Data held its initial public offering on the NASDAQ stock exchange under the ticker symbol TECD.

Over a span of more than twenty years, Tech Data expanded its footprint into Canada, Mexico, and Europe by acquiring 18 companies. Notable acquisitions included ParityPlus (Canada), Softmart International (Paris), Computer 2000 AG (Munich), Azlan Group PLC (UK), Actebis AG (Switzerland), Scribona (Nordics), Triade Holding B.V. (Netherlands), Specialist Distribution Group, and Signature Technology Group.

In 2013, an accounting miscalculation by a former financial comptroller resulted in a €27 million profit shortfall for the company.

Tech Data posted record second-quarter earnings in 2015, with net income increasing by 22.4% and sales growing by 8%, largely fueled by its data-center division.

In September 2016, Tech Data agreed to purchase Avnet’s Technology Solutions division in a transaction valued at $2.6 billion involving both stock and cash; the acquisition was finalized in February 2017. Avnet received $2.4 billion in cash plus 2.785 million shares, which translated into roughly a 7% ownership stake in Tech Data.

ExitCertified operates as a fully owned subsidiary with offices based in Canada (Ottawa) and the United States (Sacramento).

In November 2019, private equity firm Apollo Global Management announced plans to acquire Tech Data for close to $6 billion; this transaction was completed on June 30, 2020.

On March 22, 2021, Synnex revealed it would acquire a controlling 55% interest in Tech Data for $7.2 billion including debt, marking a pivotal change in the company’s ownership structure and global reach.

Merger with Synnex

Effective September 1, 2021, Tech Data merged with Synnex to form TD Synnex, generating combined revenues of $59.8 billion. This merger positioned TD Synnex as the largest distributor of IT products worldwide, overtaking Ingram Micro. As of September 1, 2024, Patrick Zammit succeeded Rich Hume as CEO, leading the company’s strategic direction and growth initiatives.

See also

External links