Tech Data

Last updated
Tech Data Corporation
Company type Private
Nasdaq: TECD
Industry Distribution (business)
Technology
Electronics
Computer hardware
Computer software
IT consulting
Retail
Founded1974;50 years ago (1974), in Clearwater, Florida, U.S.
Founder Edward C. Raymund
Headquarters
5350 Tech Data Drive, Clearwater, Florida
,
U.S.
Area served
Worldwide
Key people
Rich Hume (CEO)
Charles V. Dannewitz (CFO)
RevenueIncrease2.svg US$36.775 billion(2018) [1]
Increase2.svgUS$410 million(2018) [1]
Decrease2.svgUS$116 million(2018) [1]
Total assets Increase2.svgUS$12.653 billion(2018) [1]
Total equity Increase2.svgUS$2.921 billion(2018) [1]
Owner Apollo Global Management
Number of employees
~14,000 (January 2018) [1]
Website techdata.com

Tech Data Corporation was an American multinational distribution company specializing in IT products and services headquartered in Clearwater, Florida. It merged with competitor Synnex to form TD Synnex. Synnex is to be the primary owner (55% share). [2] Tech Data provided a broad range of product lines, logistics capabilities and value-added services that enable technology manufacturers and resellers, such as Google, Apple, Cisco, Dell, Fortinet, Hewlett Packard Enterprise, HP Inc., IBM, Lenovo, LG, Microsoft, Sony, Trend Micro, Viewsonic, TP-Link and VMware, to deploy IT solutions.

Contents

Tech Data is now one of the world's largest distributors of IT products and services, generating $37.7 billion in net sales for the fiscal year ended January 31, 2017. [3] The company ranked No. 83 on the 2018 Fortune 500 [4] and one of Fortune's "World's Most Admired Companies." [5]

History

Founded in Clearwater, FL by Edward C. Raymund in November 1974, Tech Data Corporation marketed data processing supplies for mini and mainframe computers. In 1983, Tech Data began to transition from a reseller to full-line national distributor of personal computer products, a transition led by Steven A. Raymund, Edward's son.

Steve A. Raymund succeeded Edward C. Raymund as Chief Executive Officer in 1986, the same year Tech Data announced its initial public stock offering on NASDAQ (ticker symbol: TECD).

Over the past 20 years, Tech Data expanded its business into Canada, Mexico and Europe by acquiring 18 companies. Some companies acquired included Canada-based ParityPlus, Paris-based Softmart International, Munich-based Computer 2000 AG, Globelle Canada, UK-based Azlan Group PLC, Actebis AG Switzerland, Nordics-based IT distributor Scribona, Netherlands-based Triade Holding B.V., Specialist Distribution Group (SDG), and Signature Technology Group (STG). [6]

In 2013, Tech Data lost out on nearly 27 million euros in profit following an accounting error by their former financial comptroller. [7]

On August 25, 2015, Talkin' Cloud ranked Tech Data one of the world's top cloud service providers for the second consecutive year, naming Tech Data No. 24 on the annual list. [8]

In the second quarter of 2015, Tech Data posted record earnings, increasing net income by 22.4% and sales by 8%. Tech Data's data-center business is attributed with the record earnings. [9]

In September 2016, Tech Data announced that it had entered into an agreement to acquire the Technology Solutions operating group from Avnet, Inc. in a stock and cash transaction valued at approximately US$2.6 billion. Under the terms of the agreement, Avnet received at closing approximately US$2.4 billion in cash and 2.785 million shares of Tech Data common stock, representing an approximate 7 percent ownership position in Tech Data. The acquisition was closed in February 2017.

ExitCertified is a wholly owned subsidiary of Tech Data Corporation with head offices in Canada (Ottawa) and the USA (Sacramento).

In November 2019, Tech Data announced that Apollo Global Management would acquire the company for approximately $6 billion. [10] [11] The deal was closed on June 30, 2020.

On March 22, 2021, it was announced that Synnex would acquire 55% of Tech Data for a sum of $7.2 billion including debt. [2]

Merger with Synnex

On September 1, 2021, Tech Data completed a merger with Synnex. This merger created a new company with $59.8 billion in revenue, TD Synnex. Through the combination of both companies, TD Synnex becomes the largest IT distributor, surpassing Ingram Micro. TD Synnex is led by former Tech Data CEO, Rich Hume. [12]

See also

Related Research Articles

<span class="mw-page-title-main">Citrix Systems</span> American software company

Citrix Systems, Inc. is an American multinational cloud computing and virtualization technology company that provides server, application and desktop virtualization, networking, software as a service (SaaS), and cloud computing technologies. Citrix claims that their products are used by over 400,000 clients worldwide, including 99% of the Fortune 100 and 98% of the Fortune 500.

<span class="mw-page-title-main">Dell EMC</span> Computer storage business

Dell EMC is an American multinational corporation headquartered in Hopkinton, Massachusetts, and Round Rock, Texas, United States. Dell EMC sells data storage, information security, virtualization, analytics, cloud computing and other products and services that enable organizations to store, manage, protect, and analyze data. Dell EMC's target markets include large companies and small- and medium-sized businesses across various vertical markets. The company's stock was added to the New York Stock Exchange on April 6, 1986, and was also listed on the S&P 500 index.

<span class="mw-page-title-main">OpenText</span> Canadian software company

OpenText Corporation is a Canadian Information company that develops and sells enterprise information management (EIM) software.

Ingram Micro is an American distributor of information technology products and services. The company is based in Irvine, California, U.S. and has operations around the world. Founded as Micro D, Inc in 1979 in California by Geza Czige and Lorraine Meccathe, the company has grown significantly due to acquisitions and expansions into new markets.

<span class="mw-page-title-main">WESCO International</span> Holding company

Wesco International, Inc. is an American publicly traded Fortune 500 holding company for Wesco Distribution, a multinational electrical distribution and services company based in Pittsburgh, Pennsylvania.

<span class="mw-page-title-main">Hyperion Solutions</span> American software company

Hyperion Solutions Corporation was a software company located in Santa Clara, California, which was acquired by Oracle Corporation in 2007. Many of its products were targeted at the business intelligence (BI) and business performance management markets, and as of 2013 were developed and sold as Oracle Hyperion products. Hyperion Solutions was formed from the merger of Hyperion Software and Arbor Software in 1998.

<span class="mw-page-title-main">William Amelio</span> American business executive

William J. "Bill" Amelio is an American business executive who was the CEO of Lenovo. He was also the CEO of Avnet.

Avnet, Inc. is a distributor of electronic components headquartered in Phoenix, Arizona, named after Charles Avnet, who founded the company in 1921. After its start on Manhattan's Radio Row, the company became incorporated in 1955 and began trading on the New York Stock Exchange in 1961. On May 8, 2018, Avnet changed stock markets to Nasdaq, trading under the same ticker AVT.

<span class="mw-page-title-main">Arrow Electronics</span> American company

Arrow Electronics, Inc. is an American Fortune 500 company headquartered in Centennial, Colorado. A global provider of electronic components and enterprise computing products, the company specializes in distribution and value-added services for original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers and other commercial customers. The company was ranked No. 133 in the 2024 Fortune 500 list of the largest United States corporations by total revenue. The company has also been recognized for 11 consecutive years at the top of its industry ranking on Fortune's "World's Most Admired Companies" list.

<span class="mw-page-title-main">Essendant</span> American office supply distributor

Essendant Inc., formerly known as United Stationers, is a national wholesale distributor of office supplies, with consolidated net sales of $5.3 billion. Essendant stocks over 160,000 items, including traditional office products, office furniture, janitorial and break room supplies, and technology products. Essendant is headquartered in Deerfield, Illinois, and also has operations in Dubai, United Arab Emirates (UAE).

<span class="mw-page-title-main">Insight Enterprises</span> Global technology provider

Insight Enterprises Inc. is an Arizona-based publicly traded global technology company that focuses on business-to-business and information technology (IT) for enterprises. The company is listed on the Fortune 500 and has offices in 19 countries.

<span class="mw-page-title-main">MiTAC</span>

MiTAC Holdings Corporation, formerly MiTAC International Corp. is a Taiwanese electronics company established 8 December 1982. It is a subsidiary of MiTAC-Synnex Group. Through a 100% stock swap from MiTAC International Corp., MiTAC Holdings Corp (神達投資控股) was established on 12 September 2013, and listed and traded on Taiwan Stock Exchange under code 3706.

<span class="mw-page-title-main">Synnex</span> American information technology company

Synnex was an American multinational corporation that provided information technology (IT) services to businesses. It merged with competitor Tech Data to form TD Synnex. It was founded in 1980 by Robert T. Huang and based in Fremont, California. As an information technology supply chain services company, it offered services to original equipment manufacturers, software publishers and reseller customers.

Aerohive Networks, Inc. was an American multinational computer networking equipment company headquartered in Milpitas, California, with 17 additional offices worldwide. The company was founded in 2006 and provided wireless networking to medium-sized and larger businesses.

<span class="mw-page-title-main">Virtustream</span> Cloud computing management software provider

Virtustream Inc. was a provider of cloud computing management software, infrastructure as a service ("IaaS") and managed services to enterprises, governments and service providers. It was a subsidiary of Dell Technologies.

<span class="mw-page-title-main">Hewlett Packard Enterprise</span> American information technology company

The Hewlett Packard Enterprise Company (HPE) is an American multinational information technology company based in Spring, Texas.

<span class="mw-page-title-main">Dell Technologies</span> American multinational technology company

Dell Technologies Inc. is an American multinational technology company headquartered in Round Rock, Texas. It was formed as a result of the September 2016 merger of Dell and EMC Corporation.

Orbitera is an American cloud services provider. A subsidiary of Google, the company develops and sells an e-commerce platform that automates billing and ordering processes for cloud marketplaces.

<span class="mw-page-title-main">Datto (company)</span> American cybersecurity and data backup company

Datto, Inc. is an American cybersecurity and data backup company. In 2017, it was acquired by Vista Equity Partners. In 2022, it became a subsidiary of Kaseya.

TD Synnex is an American IT distribution company with a workforce of 22,000 in over 100 countries. It was formed in 2021 by the merger of Synnex and Tech Data. TD Synnex is led by former Tech Data CEO, Rich Hume.

References

  1. 1 2 3 4 5 6 "Tech Data Corporation FY2018 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. March 2018.
  2. 1 2 Kilgore, Tomi. "Synnex stock rallies toward a record after $7.6 billion merger deal with Apollo's Tech Data". MarketWatch. Retrieved 2021-03-22.
  3. ↑ "Tech Data". Fortune. Retrieved 2018-11-10.
  4. ↑ "Fortune 500". Fortune Magazine.
  5. ↑ "World's Most Admired Companies 2015". Fortune Magazine.
  6. ↑ "Tech Data History". Tech Data Corporation.
  7. ↑ Kunert, Paul (20 December 2017). "One more beancounter given a spanking over Tech Data chicanery". The Register . Retrieved 2019-03-17.
  8. ↑ "2015 Talkin' Cloud 100: Top Cloud Services Providers". Penton.
  9. ↑ "Channel Beat: Earnings From HP, Salesforce, Tech Data Soar". CRN. 21 August 2015.
  10. ↑ Coffey, Lauren (13 November 2019). "Tech Data acquired in $5.4 billion deal". Tampa Bay Business Journal. Retrieved 2019-12-05.
  11. ↑ "Warren Buffett Failed to Spend His $128 Billion Cash Pile in Unusual Bid". Observer. 2019-12-03. Retrieved 2019-12-05.
  12. ↑ Kovar, Joseph F. (2021-09-01). "It's Official: Synnex-Tech Data Is TD Synnex, The Industry's Largest IT Distributor". CRN. Retrieved 2021-11-08.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.