Merger Comes as ‘No Surprise’

Jay McBain, principal analyst of channel partnerships and alliances at Forrester, said he predicted the Synnex-Tech Data merger would take place just a few weeks ago.

“The private equity folks are looking at $200 million in ‘synergies’ to make the deal make financial sense,” he said. “There are some strong product and geographic complementary elements to the deal. But places like North America will feel the brunt of sales/marketing/distribution centers (warehouses)/operations/finance overlap. The scale piece is important as well. Becoming the largest will command more attention and higher (potential) investments by their largest suppliers.”