TD Synnex Corporation (NYSE: SNX) has announced the pricing of a secondary public offering of 7,625,000 shares of its common stock. The offering, which is expected to close on or about January 31, 2024, will see all of the shares being sold by certain entities managed by affiliates of Apollo Global Management, Inc. Additionally, the underwriters will have a 30-day option to purchase up to an additional 1,143,750 shares of common stock from the selling stockholders.
Moreover, TD Synnex has also agreed to purchase from the underwriters 1,375,000 shares of common stock that are the subject of the offering at a price per share equal to the price per share to be paid by the underwriters to the selling stockholders, under the company's existing share repurchase program. The company plans to fund the concurrent share repurchase from existing cash on hand. Goldman Sachs & Co. LLC, BofA Securities, Inc., and RBC Capital Markets, LLC are acting as joint bookrunners and underwriters for the offering.
TD Synnex's shares have moved -3.7% and are now trading at a price of $101.36.
Commenting on the announcement, TD Synnex stated, "We're pleased to have successfully priced this secondary public offering and concurrent share repurchase. This move reflects our commitment to creating value for our shareholders and our confidence in the long-term outlook for our business."
TD Synnex, a leading global distributor and solutions aggregator for the IT ecosystem, is headquartered in Clearwater, Florida, and Fremont, California, serving more than 150,000 customers in over 100 countries. The company's approximately 23,000 co-workers are dedicated to uniting IT products, services, and solutions from 2,500+ best-in-class technology vendors.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $20,054 | $19,070 | $19,977 | $31,614 | $62,344 | $59,396 |
| Revenue Growth | n/a | -4.91% | 4.76% | 58.25% | 97.2% | -4.73% |
| Gross Margins | 5% | 6% | 6% | 6% | 6% | 7% |
| Operating Margins | 2% | 3% | 3% | 2% | 2% | 2% |
| Net Margins | 1% | 3% | 3% | 1% | 1% | 1% |
| Net Income (MM) | $300 | $501 | $529 | $395 | $651 | $661 |
| Net Interest Expense (MM) | -$46 | -$74 | -$79 | -$158 | -$223 | -$302 |
| Depreciation & Amort. (MM) | $225 | $372 | $342 | $152 | $463 | $422 |
| Earnings Per Share | $7.17 | $9.74 | $10.21 | $6.24 | $6.77 | $6.95 |
| EPS Growth | n/a | 35.84% | 4.83% | -38.88% | 8.49% | 2.66% |
| Diluted Shares (MM) | 41 | 51 | 51 | 63 | 96 | 93 |
| Free Cash Flow (MM) | -$25 | $412 | $1,808 | $770 | -$167 | $1,499 |
| Current Ratio | 1.45 | 1.62 | 1.56 | 1.25 | 1.25 | 1.23 |
| Total Debt (MM) | $3,456 | $3,017 | $1,622 | $4,136 | $4,104 | $4,079 |
| Net Debt / EBITDA | 4.76 | 3.22 | 0.24 | 4.06 | 2.37 | 1.83 |
