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.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS