SNX - Earnings call transcript Q1 2021

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Operator

Good morning. My name is Sharon, and I will be your conference operator today. I would like to welcome everyone to the SYNNEX Merger Discussion and First Quarter Fiscal 2021 Earnings Call. Today's call is being recorded [Operator Instructions] At this time, for opening remarks, I would like to pass the call over to Liz Morali, Head of Investor Relations. Liz, you may begin.

Liz Morali

good everyone. and Sharon, you, morning to Thank Thank short notice. joining us call on for today's you for With are CFO. Data's CEO; me Hume, and Rich today Marshall Dennis Polk, Witt, SYNNEX's CEO; SYNNEX's Tech today's On call, SYNNEX Tech quarter along this Data, first the the fiscal we review & SYNNEX's morning's with results. merger announcement will between of

found press Relations website Investor release, release Our our transaction earnings and associated ir.synnex.com. on press the presentation can be at

our Form press may will and I Corporation Dennis. Investor Relations or release not call to financial call to XX-K on permission. available statements of including statements the me property let everyone not today's included within and remind do filings discussed X-K Reconciliations our of the predictions, will we the the be Actual and with our forward-looking related call, projections and release to may and about SYNNEX without Risk of merger, statements. meaning certain reports website, anticipated the Form from the GAAP rebroadcasted are structure is in in securities ratings, Before earnings during other We other we we of the and today the differ continue, reference results Factors timing non-GAAP Dennis? our merger X-K estimates, federal capital risks now discussion Form that and a various any including of ir.synnex.com. benefits laws, statements section today's as this the to contains SEC. Also, result over non-GAAP these earnings uncertainties those the stakeholders, update proposed This intend results our our forward-looking information. in recorded in or turn future growth. forward-looking of filed materially mentioned of conference events, in

Dennis Polk

and come for and transformative you industry Today you, important technology the Thank call. the together. SYNNEX Tech joining to day Data is everyone thank distribution Liz, and as

help our and customers priorities. each worked their four strategic we decades to achieve grow and over For have partners

entire created. SYNNEX for at Data Like the We are been talented have colleagues. excellence in for we both partner respect have have Tech reputation team plus leaders what team with to management I a the its Data they and and us, Tech thrilled the and established has utmost space XX,XXX and the

For combination could SYNNEX, we have beneficial accelerates is initiatives multiple companies. it several diverse strategic years acquiring smaller, this by growth what as geographically done by versus our

to While bring Thus, served -- companies, able additional could services perspective, from and on respective that strategy, is each the capabilities time not we I'm the -- achieved well partners. Even this we very offered. other geographic and executed we're complementary a be company and over similar all sure to accomplished services combined with our with merger. will a planned segment customer have surface representation, appear to be to actually OEM

to For our be go-forward earnings Hume efficiencies, have scaled opportunity increased create to cash to Rich we pleased greater accelerated combined to growth, and and Rich I have investors, Over fortunate as would am Rich the to call a at I going is business him turn to forward. the point. now we're you, industry to expertise CEO significant leader Rich. the revenue with power. entity. the value the with over and flow partner able this talented by of like

Rich Hume

of and be deliver SYNNEX IT was that an shareholders, Apollo, [Technical [Technical we with will technology with value superior Difficulty] achieve in The accelerates for exceptional entire Difficulty] across our momentum the the and the combined company opportunity growth customers already choice offer efficiency I industry. and create independently. vendors about employer reach, are shareholder company transformative business could expertise believe ecosystem combining that transaction neither way to under our Dennis. Thanks, along the our

achieve to strength and the financial the enable capabilities most technology breadth a us portfolio, combined of will the diversified depth the global innovative and world's ability company have we accelerate significant distributor The together, and solutions the OEMs. to with these to Importantly, objectives. and be adoption talent attract

end-to-end of solutions. The the premier, through value multi-point optimal vendors model, more a enable best-in-class, linear We be products to among model ecosystem capitalize business-oriented for from drive to the us will can enabling and solutions XXX,XXX help portfolio that effective diversified strategies broad than all will positioned creation the participants. offerings to customers. deliver combined have and collaboration transform of their to This will go-to-market on our company

business to foundation orchestrate ability scale will the challenges we interaction, continue how Our access, is the to services solve of at to grow. required and delivery

SYNNEX as a have generation breadth and The and combined the financial grade in foundation, solid an new countries and company including strong investment free diversification in these both business which that areas extends change know, Technologies consume time these combination support you core IoT This companies. cash in footprint our are brings changing market growth user have such and causing before. As our serve. explosive as their and for next platforms to contributing Americas, as solutions. ever to to Pacific. customers' work-from-home pivotal This profile are Together, ideally the due to the IT sell, the security a global solutions growth in Asia ecosystem analytics, well of has and across we will in are is and faster cloud, will positioned Data evolution company industry. and to our our and is constant Europe investments return than investments buy, a than and technologies. Tech well this flows products technology customers end in finance opportunities our combined more evolve serves beyond The accelerated trends to office which further XXX

and at our companies' Tech deliver vendors. transformational will top value and purchasing Data companies full well-established thanks, increased Tech business on bottom-line the values services, Dennis, This SYNNEX the driving and merger, example, acquired also products, the For and a limited SYNNEX well-established a in more to especially a past. Both Similarly, not. SYNNEX efficiencies access. exciting combined meaningful integrated Japan, Europe, reach has team excelled where will organization. has presence Data confidence have is the across you. underpinning where given Data has geographies across provide does in back and combined this growth growth I our and over complementary of and have to Tech successfully that customers

Dennis Polk

QX and now through looking and and each of Very Rich. I'm transaction bring to release will walk turn this great the benefits said, terms Thanks, transaction. speak earnings of the of today. to and over the the the all cultures the Marshall support well these highlights company's our you to I to to to with to call achieve forward drive to also continue working

your take Over Following to normal I'll provide Marshall. three you, my Marshall, update of us and then quarterly questions. will

Marshall Witt

shareholders This will Pro shareholders. $X.X billion, SYNNEX transaction be valued XX% debt; forma Dennis. issue XX% is including Tech and million net shares. SYNNEX Data ownership Thanks, at at close, XX and will

expect EBITDA close be with to We in approvals. and billion, footing including subject customary generation. cash and From of conditions, by $XX on transaction the pro revenue shareholders combined a to SYNNEX regulatory half very financial closing EPS, the approval company will second healthy of solid forma flow the XXXX, perspective,

to XX% year by be transaction more to in diluted one. accretive than We expect our the non-GAAP EPS

be undrawn investment million Tech our billion a facility, customer will confident year The one, and customer which of Data's partners, loan believe synergies cash little facilitated will $XXX and credit footprints, new two. our actively There year Tech and a perspective, of balance opportunity overlap rating cost with structure combined grade minimizes the A we risk among customers outcome. combined $X.X Given diversification. in at varying realize first narrow close also a billion $X.X maturities, set regarding SYNNEX's and that is top capital unsecured expect in We're It bolstered geographic broad and we bonds synergies the at a company. see strategy to we close. expect to a $XXX complementary debt consist by SYNNEX. credit revolving and and million to $X expected as will base net deep transaction to use generate be regarding From we be and This refinance at will approximately obtain billion we seeking billion. both of by feel revenue at Data $X.X term the to

you with, acquisitions. deleveraging many SYNNEX As are of record familiar has post of diligently a long track

with results same expected to the leverage months. ratio X.X times X transaction. expect The XX approximately of close transaction this approximately times within We expected decline is at to

of also remaining provide $X.X approximately focused pro quickly de-lever combined will the ample us ability organic while growth. this entity billion, generating the driving core and adjusted on forma With to optimizing EBITDA LTM with

Now QX fiscal to moving results.

for consistent revenue was million to year-over-year. the totaled by demand. to of compared QX year. to team internal up Our up million expenses. up COVID-XX of $XX billion, the X.X%, revenue, continued the Total driven adjusted $X robust $X.X million, strong fiscal million with X% related year, $XXX margin Gross expectations SG&A quarter expense year; off XX% broad-based Total year-ago delivered ahead start was or profit $XXX or results was primarily XX% compared due the prior and and gross prior to

prior non-GAAP was the prior operating basis over did non-GAAP $X was $X.XX was year. expect million, the and was and business. interest Total $XX million or were EPS to up QX margin Non-GAAP of approximately the year; million XX% minimum XX%. the to in diluted versus $XXX a $XX from the from effective continuing over job we of continue incremental XX operating costs XX% XXXX, points up income million a $XX and million, We growth SG&A charges up income at up continuing in finance tax scaling and year; operations non-GAAP million $XX expense was year. $X.XX, of quarterly prior the rate X.X%, from the good and or operations prior

balance Accounts as totaled Now than inventories of net debt and less turning totaled billion $XXX was $X.X $X.X the and end million. QX. billion the of sheet. $X.X debt of to billion approximately Total receivable

the for cycle and inventory conversion billion $XX driven days year operations the available improvements the had approximately DSO generated lower facilities, million cash was better days, approximately quarter prior liquidity. the XX and credit was decrease our we quarter; by from of was Cash cash including in and $X.X Our first than and turns. XX

to the April XXXX be that expected quarterly $X.XX XXXX. as of a Directors XX, dividend are our of record per The the pleased to on dividend of have approved April Board of report close for to cash paid We XX, common on stockholders business is share quarter. of

Now moving fiscal QX. outlook for our to

of net the $X.XX $X.X range per revenue million. be range to of EPS diluted is expect to range million $XX.X of expected to be in approximately expected diluted outstanding $XXX the shares $X of the share non-GAAP billion. to weighted average Non-GAAP based million $X.XX We and billion in to is a in income on XX.X

the excludes the $X.X guidance cost EPS diluted share-based of compensation. amortization non-GAAP intangibles related million and of after-tax income per net share share per $X.XX $X.XX or to $X.X related non-GAAP Our or to and million

continue driven For expect the IT to healthy increasing gradually full by investments enablement. a spending year, environment, in we technology fiscal

We second quarter expect our diluted year per XXXX actual these that our and share. and are may fiscal Please note non-GAAP of forward-looking differ full that of fiscal approximately results expectations materially. statements EPS $X XXXX

will over call back Dennis. turn to I the Now you,

Dennis Polk

excellent to Thank the quarter QX, customers continued and dedication environment; support you, service. but navigate an Marshall. creativity I'm delivered. we In have again that all, partners showed and very and it with innovative to to proud through exceptional the results we our team ways of unpredictable associates our find flexibility, first

for across were driven collaboration Chromebooks, transformation all strong and solutions as quarters, like notebooks expectations and our healthy Similar past by services. devices client Our demand to well our few businesses the security, continued. internal as capability digital demand as saw broad-based we for results investments cloud, demand remote related and continued above

in also networking. solutions, including areas saw We improvements like and server enterprise

From Our customer quarter. all really in exceeding well, by to with regions Canada performance geographical with the came the performed exception growth perspective, segments in a expectations Japan all the contribution from most. and across our no the

Turning to our QX outlook.

we associates. IT Our environment and encouraged about priority so remains Overall, safety far the spending our XXXX. of health are on in and the

appears is it closer following. move we in sense to normalcy, a especially investment, IT, of As

by rate. business grow to continue being the our Perhaps we ongoing fairly For our a bit we're on-premise as anticipate up than the each with activity purchasing picking ongoing for is second given is that our currently, implied a QX, mid growth our market upper guidance the environment to our will backlog expectations high evident quarter year-over-year single with quarter. execution, and demand strong better digit cautious

evident with However, performed by for our QX Marshall we the the given Overall, and early how we will of EPS business, range trajectory how we year. are our in pleased in are much we we expectations start QX, calling have over provided. current the with out

again know M&A both those important a wealth Tech merger cultural for and We successful the Tech industry. have As is of Data believe creation have has customers partners years Data part I years a our and given knowledge announcement, have very on and transactions and how many the in touching industry, space an to that strong the fit, followed well up who and on wrap this a many knowledge and up, we built over value workforce. been of and have outcome participated experience situated the strong are delivered. of ensuring that talented combined I

are as the closer plan, we get you integration close. more We with robust and developing a share we'll to transaction

partnerships our In significant business. realizing possibilities with shareholders. company, that, we partners, I'd along the for and with focused that our that thank deal We team, I my in, combined excited produce vendors business. associates creates to confidence call this that the and enough support our all to and talented customers, up for are we closing, our our very operate like focus very questions. in strong communities for This customers, SYNNEX our should on do can't for open the core you remain the company With and who forward for look value by the

Operator

Baruah question Loop with from Instructions] Ananda [Operator comes First Capital.

Ananda Baruah

guys. Thanks, Good Hey. morning.

Let's congratulations. say

distribution, the the [Technical you team Two be still that if from surprised, sort if the team Two years to Rich into I shouldn't back think executives Difficulty]. and thank community, welcome guess of, I of guys super to the want financial management even the -- last sphere I XX though of miss over your could public could. I half but here.

-- think -- you you on that -- suppliers. at the guys can company is, can those a normalized mentioned call and then customers this companies? Do if Thanks. combined than gain well. inside share that. you normalized, inside is rate term knowledge first the the language -- expect follow-up a growth that, higher have with growth separate And or be you the share One I rate longer is two -- The my as

Dennis Polk

a you. Yeah, bit hard Ananda. Hi, hear to

I got appreciate most of transaction. And your about your we thanks, there. I question comments think the

the as a yeah, the far market company, we is as expect So combined company grow opportunity do significant to there faster than rates.

offerings in complementary is offered. very remarks, service what prepared his will really company, market And strategies we the enjoy we two Co. our customers the -- solid businesses. when have a we bring But that for with are combined We some to go-to-market of to each in the about -- combination think there of think combined those and both talked are benefit good we growth very offerings company's Rich As services solid together, and limitations will case, very our partners. drive

Ananda Baruah

that. I'll Okay, follow I appreciate that's here. great. just And quickly my ask up

a reopen. that? from and -- Are Dennis, ongoing what things structural spending IT share, of hybrid of all any businesses structure as You And to sense be could businesses be remote would work, a anything from get things mentioned work, -- great. related, strong through you the like you so, hybrid could -- even year those anecdotal this balance able impact

what Beyond of the may future in years? businesses Thanks. impact as That be well. helpful tail structural there would the be reopening,

Dennis Polk

Yeah. Sure.

So, far, our business. very demand we've good so seen a in

prior the won't QX. year, we I do the work work back going a business rest environment we opening when overall, know be it of think were workforces like comments our that environment comes the office, pandemic. and provide think our the Ananda, to tailwind it businesses trajectory was to all will the forward because of around for far of through so return But So the the up

and to remote will handle at year for invest the capabilities the and companies business, beyond. workforce provide from additional think have office. the of for either rest in a And we IT that tailwind set good the up be a or again to us that's should home to our So going for

prior quarter just tactical now we're to answer standpoint, projects seeing this we are one QX. So quarter two, the and that's question. QX and QX that from occurring current -- current on-premise quarter, part to the Part in, more your quarter day-to-day a

our So of some well during occurring able tailwind and or for that's were are from delayed product and halted we that now the good as customers were business to support deliver a that as our we're projects see pandemic these perspective.

Ananda Baruah

really That's helpful.

Rich Hume

If call opinion center when year, data back demand been I the will data pent-up could and for the projects Dennis are I what giving perspective there in I'm would one category, of point have demand Ananda, deployments that you of it's the that in toward slowed it's center view, as manifest now the look start said we my an to there itself there. industry had I And pent-up my believe those traditional and half is -- demand. but

of The of think demand. continue that, cloud-delivered the rest I will around relative question, I nature IT accelerated are the that would category. was of the It I the demand accelerated your think, and distribution. second clearly for And certainly, totality relative part capabilities be the hybrid to anticipate of opportunity to it's -- provides the the great to a that world,

Operator

Adam Next from question with James. comes Raymond Tindle

Adam Tindle

landmark Good for thanks. and two-part congrats Dennis. question dissynergies, have on I maybe on a and Okay, synergies transaction. a morning,

Maybe side, you very as both $XXX We talked starting could the just the nature plus those two million you synergy companies operators. Just of on talk about over lean years. think synergies. of about

and include? a you million, synergies being customers response? customer So OEM, or upside $XXX served. there color from areas you about and beyond what OEM of contemplated Are similar on any didn't perspective, secondly, And with the geographic talked the for that nature the dissynergies, then

Dennis Polk

well-run bring companies so when yeah correct, you are leverage companies. Hi, very from we as But transaction. well. there synergy know the two we're are from together, benefits to IT this Dennis. But standpoint, Adam. have Yeah, opportunity an Yeah, we a two you our systems, this is

ERP very us synergy to I going forward. think own SYNNEX we and That's internal savings garner a can we beneficial area has where think of its lot been system. a key that's

a also are companies we the the consolidations as facility companies. is spend, that of quite bit together. areas bring but There two Additional saved be corporate two will of

we aspects that constantly the working operations main both garner and you we're -- we'll are the three consistently continue of we areas we as But synergies So know, combined those as key beyond core with not businesses, will year first that from. there our gain achieve our but companies that of on and our the savings in efficiencies second the working find company, well. of well. and think And think ways to just the the as on transaction,

think really to what two there -- start bringing aspect We're that together. the going aren't of not is from we a amount So a the standpoint, forecasting companies many. tailwind a significant synergy -- There totality really we're to From can there from dissynergies those small top on with there of is could But customer dissynergies. again, we the not of as the individually, transaction. be the two customer material we and see where situations of together. overlap maybe very or amount serve some dissynergy the in companies

Adam Tindle

Okay.

Rich Hume

about of of then Dennis complementary said, piece, as terms the dissynergies. Adam the of somewhat minimized talked earlier in because be And of might some what level on It's business. aspects dissynergy our he maybe there

does the and So line is SYNNEX there keep certainly are Data a things the Tech not just example that reverse to card on carry, simple here, true.

Yes, sort sets one in might incremental it that to some think. our capability forward. also it's complementary, but customer And serve set as customer commented, significant customer isn't the overlap, we'll our going quite so totality. be is able there as sets, of as are within he So

opportunity exist cards. think to is the whatever line I offset complementary there that might with dissynergies great So a

Adam Tindle

you Understood, to Rich. and hear good from

a Marshall. follow-up, Just maybe as one for

just and could post One say the If around. that you're transaction X.X about financing you different of talk kicked options the debt just you've net times might close.

of in or change normalized million pay debt secondly, reflection cash timers $XXX deal? got on is billion the your you. debt like of or comp, there the not over cash use why a the next And the about synergies like Are then down entities of an high You've accurate so. $X implies months generation that, XX combined flow? anything there or one in that more Thank

Marshall Witt

Adam. Yeah,

terms at forma about best made and capital the to powder look we'll of feel generation. a did basis, structure times how X.XX having do most term So we cash we from optionality to dry perspective cost, gained. bonds like sense the a the yeah, confident with call from will combination then, One-time of us. pretty we And around, and for loan times unsecured the the it just felt think synergies the pro be X flow in then

start felt We well good times X.X to and or expect confidence to the and X months. times being available XX that was us have X.X at close of with comfortable X within ready at a liquidity times leverage get place below to below to

Adam Tindle

there something of to for Is the what planning that the need ongoing a liquidity, do capital the something business? with, that working you're is just maybe or needs business,

Marshall Witt

Yeah.

and Given we Dennis as to Rich working expect capital, both and said, grow.

to be the powder to what that combined entities dry a we've are perspective in going expect in growth need got that business. we ensure to need the from that extra position We

Operator

from Next question America. Ruplu with comes Bank of Bhattacharya

Ruplu Bhattacharya

stand Can And And think $XXX give Tech where my taking merger that us that, questions, do the you to Maybe continue if XXXX. on you invest change first Rich. path? When does an for on it intended how does? you for and you that? intend to on went digital private, through transformation million I update on had deal congrats Data announcement. question the Thanks in this

Rich Hume

the thank question. for Well, you very much

and top-level as a category. within So we executory going planning tell sorry, determine our But the two look the might is our under provide yes, to do another's we you would our and we joint into forward. get experience I as vision -- one is well way, about -- stakeholder think vendor, investments that we colleague at two period, opportunity assets it leading those our you customer associate that companies, combine and need I'm the what and the some -- as at when when -- we'll to have had

we we'll but not with be come short we deploy story long invest that SYNNEX as a because might in to we the aligned together. what our lot So is, capability of might up to planned continue be it picking business, from originally

Ruplu Bhattacharya

for for makes combined line my the for company. That card ask Okay, Rich. the Maybe second thanks question, about that sense. I'll you

Data what advanced from solutions remember, I think from printers was business, other Tech of had XX% networking. the the like revenue phones about I of endpoint and storage solutions was and and and half PCs which

also SYNNEX to has think of peripherals, XX% about XX% I revenues.

So when on you like look revenues where from thoughts of initially might what at versus add? want the services? combined -- would overall and line the where card, your you kind to card, you sense software how combined do initial much -- strengths line be want of do you hardware any have of an you see where Any versus

Rich Hume

Yes.

think believe comprehensive critical I is very, at I Tech Data So line very being think the cards, offerings. have of and take an first characterization accurate When most have over the point we you nearly the with portfolio we combining of, we'll XX-XX. portrayal XXX,XXX a within look absolutely the market

security, first, IoT. would it I As are we to business in where incrementally we prepared cloud, we and common the make the but analytics, forward, know it, core that a absolutely area as our to be, my vision sure of future interests business today said to where in that share remarks, we're relative servicing relates as need in going invest we'll our

needs we're we're vendors the sure well support that opportunities make moving offer to probably they to able going accelerated forward. market, within and know, customers growth you IT with As and those

continued the and invest, would our opportunities our I heavy at this the of So more context of categories. keep business continuing these and and really invest to weight targets solutions same think those endpoint a robust maybe bit time to and very market setting advanced healthy toward little emerging in into

Operator

Stifel. Next Sheerin question with comes from Matt

Matt Sheerin

well big specifically, team. Data Yes, good Tech getting branding Good guess there reception you and Obviously, getting, and SYNNEX just Data that? SYNNEX Rich, go-to-market customers details in from and merger. the could the company. you've that regarding One very but you're and of of obviously, hello, your known, morning and And thank about reseller with terms vendors for you're question, I the are Tech about also strategy A them? lot concerns the big Europe, you. talk had very in and or conversations the

Rich Hume

Maybe Sure. take question. of take the second the half I'll Dennis and first can half then the

relates very honestly, of discussions. use it the to headquarters to those as We're that out insights, data, upon timeframe matters, we vendor data, together. those market we and in not really embarked that's where certainly as things we'll and executory even those the rely data that going branding and have So those And come will customer decisions. type take to flesh period market

And Dennis so of the on Matt, there. from back can can we question, half your comment go then maybe and

Dennis Polk

good cross this both of we now, have talk a Yes. call has all to section Matt. board. Yeah, Thanks, before moments a Rich. vendors. the overwhelmingly been the partners, our positive chance very Thanks, a did through And diligence customers and feedback process through and to the across way

customer from see So this lot our excitement we support for and transaction base. a and of vendor

Matt Sheerin

just give you business, the Any or upgrade all, regarding updates there. about. then a customer guidance. moving longer the Is revenue this that a Could we've high ongoing And second, constraints SYNNEX timeframe? the supply there? consignment-only about cycle does runway large And business here with you've hearing at the regarding your been talked tell you. you a with model given Thanks. backlog? Thank us that to the then One, in questions right. PC All just it couple specifically your impacting Okay. of

Dennis Polk

Matt. Thanks,

and the to first hand it part, I'll So second. turn over Marshall for the

a from from be As chain, far product the in extended shortage supply SLAs the as our from product vendors just challenges able from manner. are to there a standpoint, still get timely

are well I partners. our very documented think from vendor those well explained and

rarely So our we quarters. consistent backlog. the We've past the much about backlog the has right very three with what talked have past, been now, in is of

see backlog chain a in to work customers, good high our through so. and the you best do a will through done tell can still job good we challenges and those market. to supply and deliver consistent always, that very our our that we've as you there QX in doing are very So service performance in But

Marshall Witt

for the consignment Matt, second QX. we year. what QX the then and we said, transition change take It as probably to to switch. part. in not time we Still And from our light customer No It's for in fully thoughts the connected. full Hyve turn-on a it's expect ramped in I'll will And last said reflected QX.

Operator

question with comes next Cross Cross from The Shannon Research.

Shannon Cross

the much come of we'll curious, the the the and question. What split Tech I versus out can you. when and just coming taking And I'm Apollo through valuation Data sort were of thoughts about? follow-up. proxy. If have sure Thank you information ownership? us more talk where for very it? comes out? Thank of my the of you're But Form-XX a And transaction sort you about did I'm then SYNNEX get thought around and how how

Dennis Polk

start is Dennis. This Shannon. Hi, I'll with off that one.

how proxy filed the today. that's past the conversations really we're that things transaction to yeah, and operating roll-up opportunities a all combination value lot of months, details, and businesses Obviously deliver and let of And together. the to get of to other our Data are here the vendors had, excited this about and these see we've and excited growth always SYNNEX. to through in the value, you'll and could got regards they today. deliver be colleagues and both we'll So for two we companies talking companies had very We're customers over and conversations we close why way we Tech the where evaluating are the investors. few to we've very enhancing our two the and With realized

Okay?

Shannon Cross

and figure in I terms the with it guess the I us trying can they But thought there's to came know when details Okay. that, at perspective mean, closed given, up how other multiple I you you from don't give in billion it? $X any I'm about June if EBITDA out in Apollo valuation was an deal? of just

Dennis Polk

Sure. Right.

similar that to add took multiple the will paid this is -- recent to been with Westcon-Comstor. in TS paid multiple the I consistent for one I have some that Apollo transaction So comments. that was similar Data our that Dennis. again can transaction of and private. think is multiples in want standpoint, including this industry, the also a most our maybe Tech It's transaction Rich From take when multiple

grown to its Tech I then. and Apollo thing since XXXX, back key of realize has and that, think since Data Tech business announcement is the Data the improved in

So that's what the any with to with we the negotiations comments. that's you we over to when other of factored our value and company in added the company. had Rich,

Rich Hume

Yeah, is note, as about a Apollo important talked of XX%. I had Dennis the shareholder think since it's approximately ownership to

this they of part is investor engagement of forward. journey meaningful as continue be distribution with certainly we And so their that and IT just as to and a here, view journey they'll sort move a

well I the investment they accurate, think as opportunity great around think Dennis into message So, is a are big the this here and future. I the as move made multiples they comments etc. see as the

Shannon Cross

that, Okay. that is you And which with long-term answers my question I obviously, then is confirm think kind Apollo that was, correct? seats. just -- of committed, second was Board But

Rich Hume

of some have do they and investors meaningful are the they correct. seats. That's certainly, Board Yeah,

Shannon Cross

much. very you Thank Okay.

Operator

[Operator Vincent with Next question Colicchio Instructions] from Barrington. comes

Vincent Colicchio

I'm any one be Will I the said is that Marshall systems. of with or sure earlier IT complexity what Yes. it missed you on integration? that Dennis. for this sort

Dennis Polk

years SYNNEX and has systems history IT transition and a here. companies that transactions there Dennis have around a has of Vince. well. any over they large the few can very of our doing systems. a is been integration integration Data the said similar good complexity Hi, But as shown very so, a we prepared in Tech remarks, IT merger, have resulted from Yes, very, with through both quite one.

job So that know-how, very well. integration we're we'll us, and the move realize aspect very we a with of this confident through our experience front but in it's of big

Vincent Colicchio

Canada had on all regions give you you the are business, Can mentioned Japan exceeded expectations. us and strong and then on existing color And more that?

Dennis Polk

Yeah.

So performance to our across was ongoing school that's board, really our one there to in it is play strong we've child, another because every a Japan participant division, a out In been expectations, Chromebooks numbers an specifically big PC delivering Japan. our students or quarter those every age four past per and playing been for should so pretty the to in and throughout that PCs the across quarters, Japan. in business. country And or three

that the significant the solutions good with today. and to turned hard Japan team that work of continued over from performance. Canada, the nice into produced been caused In deliver really again, offerings, that's that done very why a just team wins has results solid it's build just our expectations talking execution plus a it's on that's Canadian So year solid base that's basis. past and really, to customers about and consistent And had we're above a

Operator

telephone Polk. turn Mr. this any over call we Dennis And questions at I not to have time. will do the Instructions] [Operator

Dennis Polk

Thank you.

ongoing for want So making want I in coming of success with I efforts. you. of team to our Rich well, and business the Stay today eventual and merger SYNNEX Tech thank happen. the thank their look for help Data. have ongoing I the Data forward and combination closing, all confidence year in and thank to team the to their in Tech

Operator

conference This concludes today's call.

disconnect. You may now

TD SYNNEX (SNX) 23 Mar 212021 Q1 Earnings call transcript