Synnex, for its second fiscal quarter 2021, reported increased revenue and earnings over last year, but noted that this being the first full quarter to report since the COVID-19 coronavirus pandemic began impacted comparisons. “There wasn‘t a major product category that we serve that has not been affected by supply chain challenges, certainly over the last quarter, but really, frankly, over the last 15 to 18 months,” he said. When asked by another analyst about supply chain constraints, Polk said there are constraints pretty much across the board, including client devices, networking, CPUs, and even some displays and print products. “And, as important, we’ll be combined and able to consolidate our investments to invest where their business is going, either in as-a-service, cloud, or any other next-gen IT product.” “Again, positive feedback from the fact that we‘ll have, again, a global platform to service vendor needs wherever they want to sell their product,” he said. The vendor side has also been positive about the merger, Polk said. But combined with Tech Data, we‘ll be able to service customers with all product sets and in all geographies.” ”Synnex, prior to the merger, was more niche from a vendor perspective and a geography perspective. “Our customers are positive because they see us having a larger platform to service all their needs,” he said. When asked by another analyst for specific details about the feedback to the merger, Polk replied that Synnex has received positive feedback from its four main constituents: associates, customers, vendors, and shareholders. “And I’d say at this point we’re more than half-way through,” he said. When asked by an analyst about the approval process, Polk said Synnex already has about 20 regulatory approvals yet to finish. “The integration work we have performed since the announcement, albeit limited due to regulatory rules, further supports the strategic benefits of this deal that we discussed in March.” Synnex continues to receive internal and external support for the merger, Polk said. The acquisition is still expected to close in the second half of 2021, which reflects the typical six months to eight months announce-to-close time frame of a deal this size and complexity, Polk said. As would be expected, the COVID pandemic has led to a few delays in some countries.” And, from a regulatory standpoint, we have received clearance from a number of governmental authorities, and expect the rest to process though normal course. “Our proxy has been filed, and our shareholder meeting will be held next week. “We are set up for an effective financing of the transaction,” he said. Polk, speaking to financial analysts during the Fremont, Calif.-based distributor’s second fiscal quarter 2021 quarterly analyst conference call, said during his prepared remarks that everything is going well with the proposed merger of the Synnex and Tech Data. Synnex’s planned merger with rival IT distributor Tech Data remains on-track as the company continues to receive positive feedback and finalize regulatory approvals despite lingering impact from the COVID-19 coronavirus pandemic, President and CEO Dennis Polk said Thursday.
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