Synnex

Synnex was an American multinational information-technology distribution and supply-chain services company founded in 1980 by Robert T. Huang and headquartered in Fremont, California. It began as a technology hardware distributor and expanded into a broad intermediary between technology manufacturers, software publishers, systems providers, resellers, and business customers. Its activities included the distribution of computers, peripherals, components, networking equipment, software, and related products; logistics and fulfillment; contract assembly; business-process outsourcing; customer-care services; and specialized technology integration. The company’s business model was built around operating scale and channel expertise. Rather than primarily selling technology directly to consumers, Synnex helped original equipment manufacturers and software companies reach value-added resellers, systems integrators, retailers, and enterprise buyers. Its supply-chain capabilities covered procurement, warehousing, configuration, order management, delivery, and other services associated with moving complex technology products through indirect sales channels. Its outsourcing and customer-care operations broadened the company beyond traditional distribution and gave it exposure to recurring services and enterprise support work. Synnex expanded through acquisitions and partnerships. It purchased Jack of All Games from Take-Two Interactive in 2009, adding a video-game distribution business, and acquired the managed business-solutions division of India-based IT services provider e4e in 2010. Its Hyve Solutions business also participated in technology partnerships, including a 2012 collaboration with IBM and Zettaset on a bundled Hadoop analytics platform aimed at small and medium-sized businesses. In 2013, Synnex acquired IBM’s worldwide customer-care business-process-outsourcing services business, strengthening its services and outsourcing portfolio. A major expansion occurred in 2017, when Synnex acquired the North and Latin American operations of Westcon-Comstor and a minority interest in the remaining Westcon International business from Datatec. The transaction expanded Synnex’s networking, security, and communications distribution capabilities and increased its geographic reach. In 2018, Synnex agreed to acquire Convergys for approximately $2.43 billion in cash and stock. Convergys was integrated with Synnex’s Concentrix business, creating a larger customer-experience and business-services operation. The transaction was completed in October 2018. Synnex subsequently separated its distribution activities from Concentrix. The separation was completed on December 1, 2020, with Synnex shareholders receiving shares in the separately traded Concentrix company. Synnex then agreed in 2021 to combine with Tech Data, another major technology distributor. The merger closed on September 1, 2021, creating TD Synnex. The combined company inherited Synnex’s distribution and supply-chain operations, while the standalone Synnex corporate identity ceased to represent an independent public company. The former Synnex organization is therefore best understood as a predecessor of TD Synnex rather than an active standalone brand.

Synnex was established in 1980 by Robert T. Huang as a technology hardware distributor in the United States. Its initial role was to connect technology manufacturers with indirect sales channels, but the company gradually developed a broader set of supply-chain, configuration, logistics, and outsourcing capabilities. It served original equipment manufacturers, software publishers, systems providers, resellers, and other business customers rather than focusing primarily on direct consumer sales. Over time, Synnex expanded its product coverage to include computer systems, peripherals, components, software, networking equipment, and related technology products. Its distribution operations were complemented by warehouse management, order fulfillment, contract assembly, product configuration, and channel-support services. The company also developed business-process-outsourcing and customer-care operations, allowing it to participate in services activities alongside traditional wholesale distribution. Synnex became a significant employer in Greenville, South Carolina, while maintaining its corporate headquarters in Fremont, California. Acquisitions were a central part of Synnex’s development. In December 2009, it acquired Jack of All Games from Take-Two Interactive, adding video-game distribution. In December 2010, it purchased the managed business-solutions division of e4e, an IT services provider based in Bangalore, India. In 2012, its Hyve Solutions unit announced a partnership with IBM and Zettaset to produce a bundled Hadoop analytics platform designed for small and medium-sized businesses. In September 2013, Synnex acquired IBM’s worldwide customer-care business-process-outsourcing services business, reinforcing its international services platform. In June 2017, Synnex acquired the North and Latin American operations of Westcon-Comstor and a 10 percent interest in the remaining Westcon International business from Datatec. The transaction strengthened Synnex’s position in networking, security, communications, and specialized technology distribution. In 2018, Synnex agreed to acquire Convergys for approximately $2.43 billion in cash and stock. Convergys was combined with Concentrix, Synnex’s customer-experience and outsourcing business. The merger was completed on October 5, 2018, creating a larger services organization while leaving Synnex with both distribution and customer-experience operations. In January 2020, Chief Executive Officer Dennis Polk announced a plan to separate Synnex and Concentrix into two independent public companies. The separation took effect on December 1, 2020. Synnex shareholders received shares in Concentrix in proportion to their existing Synnex holdings, while Synnex retained its technology distribution and supply-chain focus. The company’s final major corporate transaction was its combination with Tech Data. Announced in March 2021, the merger was valued at approximately $7.2 billion including debt, with Synnex shareholders receiving 55 percent of the combined company. The transaction closed on September 1, 2021, and the resulting business was named TD Synnex. The combination brought together two large IT distributors and created a company with reported annual revenue of approximately $59.8 billion. Synnex consequently became a predecessor organization and ceased operating as an independent public company.

1. 2021Tech Data merger creates TD Synnex

   Synnex completed its merger with Tech Data, creating TD Synnex and ending its standalone corporate existence.

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2. 2020Concentrix is separated

   Synnex completed the separation of Concentrix into a separately traded public company.

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3. 2018Convergys transaction closes

   Synnex completed its acquisition of Convergys and integrated it with Concentrix.

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4. 2017Westcon-Comstor expansion

   Synnex acquired Westcon-Comstor operations in North and Latin America and a minority interest in Westcon International.

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5. 2013IBM customer-care business acquisition

   Synnex acquired IBM’s worldwide customer-care BPO services business.

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6. 2012Hadoop platform partnership

   Hyve Solutions partnered with IBM and Zettaset on a bundled Hadoop analytics platform.

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7. 2010e4e division acquisition

   Synnex acquired e4e’s managed business-solutions division in Bangalore.

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8. 2009Jack of All Games acquisition

   Synnex acquired Jack of All Games from Take-Two Interactive, entering a larger role in video-game distribution.

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9. 1980Synnex is founded

   Robert T. Huang founded Synnex as a technology hardware distribution company.

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A large-scale technology channel intermediary combining product distribution, logistics, configuration, outsourcing, and partner-enablement services for manufacturers, publishers, resellers, and enterprise customers.

• IT hardware distributionTechnology distribution1980

  Synnex distributed computers, systems, peripherals, components, and related hardware from manufacturers to resellers, systems integrators, retailers, and business customers. Its role included procurement, inventory management, order processing, warehousing, and delivery, enabling manufacturers to reach indirect channels at scale.

• Software and networking distributionTechnology distribution

  The company distributed software, licensing-related products, networking equipment, security technologies, and communications systems. These offerings supported channel partners that needed access to multiple vendors and specialized technical products without sourcing each product directly from the manufacturer.

• Supply-chain and logistics servicesSupply-chain services

  Synnex provided logistics, fulfillment, configuration, contract assembly, and other supply-chain services for technology suppliers. These capabilities helped customers move products from production through distribution channels and could include product preparation, order management, warehousing, and delivery coordination.

• Hyve SolutionsData-center and infrastructure solutions

  Hyve Solutions was Synnex’s infrastructure-oriented business, associated with server, data-center, and high-performance computing solutions. In 2012 it participated in a partnership with IBM and Zettaset on a bundled Hadoop analytics platform intended to make large-scale data analytics more accessible to small and medium-sized businesses.

• Business-process outsourcing and customer careOutsourcing services2013

  Through acquisitions and its Concentrix organization, Synnex provided customer-care, business-process-outsourcing, and related enterprise support services. The acquisition of IBM’s worldwide customer-care BPO services business in 2013 and the later Convergys transaction substantially expanded this part of the company, although Concentrix was separated from Synnex in 2020.

• 2021Merge with Tech DataM&A

  The transaction was intended to combine two major IT distributors and increase scale in a fragmented technology channel.

  What changed. Synnex agreed to merge with Tech Data, with Synnex shareholders receiving 55 percent of the combined company.

  Aftermath. The merger closed on September 1, 2021, creating TD Synnex and ending Synnex’s status as an independent public company.

  Transaction value including debt. $7.2 billion (2021)

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• 2020Separate Synnex and ConcentrixStrategy

  Management concluded that the distribution and customer-experience businesses could operate as more focused independent public companies.

  What changed. Synnex separated Concentrix into a separately traded company, distributing Concentrix shares to Synnex shareholders.

  Aftermath. The separation was completed on December 1, 2020, leaving Synnex focused primarily on distribution and supply-chain services.

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• 2018Acquire Convergys and combine it with ConcentrixM&A

  Synnex aimed to increase the scale of its customer-experience and business-services activities.

  What changed. Synnex agreed to acquire Convergys and integrate it with Concentrix.

  Aftermath. The merger closed in October 2018 and created a substantially larger outsourcing and customer-care operation.

  Cash and stock consideration. $2.43 billion (2018)

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• 2017Acquire Westcon-Comstor operationsM&A

  Synnex sought to expand its international distribution portfolio, particularly in networking, security, and communications technology.

  What changed. It acquired Westcon-Comstor operations in North and Latin America and a 10 percent interest in the remaining Westcon International business from Datatec.

  Aftermath. The transaction broadened Synnex’s geographic presence and specialized technology-channel capabilities.

  Reported transaction value. $800 million (2017)

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• 2021Cybersecurity incident involving Synnex-related systemsControversy

  In July 2021, reporting about the compromise of Republican National Convention servers discussed a possible connection to the Kaseya VSA ransomware attack. Synnex said the activity could potentially be connected to the earlier incident. The available reference does not establish that Synnex was responsible for the attack, so this item records the reported cybersecurity association rather than a finding of misconduct.

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• 2021Synnex agrees to merge with Tech Data

  Synnex announced a merger with Tech Data in a transaction described as valued at approximately $7.2 billion including debt. Synnex shareholders were expected to own 55 percent of the combined company.

  M&A
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• 2021Synnex and Tech Data merger creates TD Synnex

  The merger closed on September 1, creating TD Synnex, described in the reference material as the world’s largest IT distributor at the time and ending Synnex’s existence as a standalone public company.

  M&A
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• 2020Synnex announces separation from Concentrix

  Synnex announced plans to separate its distribution business from Concentrix into two separately traded public companies.

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• 2020Concentrix separation is completed

  The separation was completed on December 1, with Synnex shareholders receiving one Concentrix share for each Synnex share held.

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• 2018Synnex agrees to acquire Convergys

  Synnex announced an agreement to acquire Convergys for approximately $2.43 billion in cash and stock and combine it with Concentrix.

  M&A
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• 2018Convergys merger closes

  The Convergys transaction was completed, enlarging Synnex’s customer-experience and business-services activities through Concentrix.

  M&A
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• 2017Synnex expands through Westcon-Comstor transaction

  Synnex acquired Westcon-Comstor operations in North and Latin America and a minority interest in Westcon International from Datatec in a reported transaction valued at approximately $800 million.

  M&A
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• 2013Synnex acquires IBM worldwide customer-care BPO business

  Synnex acquired IBM’s worldwide customer-care business-process-outsourcing services business, adding scale to its customer-support and outsourcing activities.

  M&A
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• 2012Hyve Solutions partners on Hadoop analytics platform

  Hyve Solutions announced a partnership with IBM and Zettaset to develop a bundled Hadoop-based analytics platform for small and medium-sized businesses.

  Product launch
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• 2010Synnex acquires e4e managed business solutions division

  The company acquired the managed business-solutions division of India-based IT services provider e4e, expanding its services presence in Bangalore.

  M&A
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• 2009Synnex acquires Jack of All Games

  Synnex acquired the video-game distributor Jack of All Games from Take-Two Interactive, extending its distribution portfolio into the games channel.

  M&A
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1. Synnex