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Get used to hearing the name Synnex because the chances are it is going to become more of a player in the UK. Not only has the US firm snapped up Westcon-Comstor on the other side of the Atlantic for $800m but it has taken a 10% minority investment in the international operations, including the UK, for a further $30m.
Both Synnex and Westcon parent Datatec will have shareholder interests in the US and international business with each having representation on the other firm's board.
Jens Montanana, Datatec CEO, said that it made sense to choose a suitor for the business that was a "well respected Fortune 500 corporation" and it made sense from both a vendor and reseller perspective.
“Westcon-Comstor North America will benefit substantially from being part of a bigger business with a much larger addressable market," he said.
Dolph Westerbos, CEO of Westcon-Comstor, said that the deal would give the firm the chance to accelerate its growth.
“Synnex is an undisputed leader in IT distribution, particularly in North America. Its breadth of customers and technology solutions will be a tremendous benefit to our portfolio. This transaction not only brings together two complementary businesses, but also two similar cultures around employee and customer success," he said.
The prospect of a sale at Westcon-Comstor has been going on since the firm first indicated that discussions were underway earlier this year. Plenty of names had been floated as potential suitors but Synnex had not be one of the first that came to many minds.
“Westcon-Comstor has developed a successful business around the world with a very deep and talented team. We are excited to welcome the Americas organization to the Synnex family and look forward to leveraging their global expertise to serve our customers in new and innovative ways,” said Kevin Murai, President and CEO of Synnex.
The deal is expected to close in the third quarter once it gets the green light from regulators.