SYNNEX Corporation Announces Acquisition of a Controlling Interest in Marubeni Infotec Corporation, a Subsidiary of Marubeni Corporation
Acquisition extends SYNNEX' distribution footprint; scales vendor
base and SYNNEX' world-class operations and ERP
FREMONT, Calif.--(BUSINESS WIRE)--
SYNNEX Corporation (NYSE:SNX), a leading business process services
company, today announced it has entered into a definitive agreement to
acquire a controlling interest in Marubeni Infotec Corporation (MIT), a
subsidiary of Marubeni Corporation. MIT is a leading distributor of IT
equipment, electronic components and software throughout Japan and has
annual revenues of approximately $1.1 billion. SYNNEX will acquire MIT
through one of its wholly-owned holding companies and also through SB
Pacific Corporation Limited, a minority investment.
"With the acquisition of MIT, SYNNEX is excited to re-enter Japan, which
represents more than one-third of the Asian IT market," stated Kevin
Murai, President and Chief Executive Officer of SYNNEX Corporation. "We
can leverage our deep vendor relationships to drive market growth and
enhanced services within MIT's offerings. We also look forward to
further enhancing MIT's operations with our proven business processes
and customized ERP system."
Mr. Murai went on to state, "We are pleased Bob Huang, SYNNEX' founder
and former CEO and Chairman, will initially serve as the CEO of SYNNEX
Infotec Corporation, MIT's new name after the acquisition, and his
skills and detailed operational focus will help ensure a smooth
transition and speedy acceleration of operating and financial
objectives."
"I'm looking forward to helping SYNNEX expand its business into Japan.
We can leverage SYNNEX' cost efficiencies and scale while enhancing
services into MIT's offering for its customers. MIT has strong local
vendor and customer relations in Japan which we expect will strengthen
under the SYNNEX name," said Bob Huang.
"SYNNEX will help grow MIT's relationships with existing and new vendors
enabling MIT to profitably grow market share in Japan," said Ryoichi
Watanabe, General Manager of IT Solutions Business Dept. of Marubeni
Corporation. "As we transition MIT over to the SYNNEX family, we are
confident MIT will benefit from the leveraging of SYNNEX' operating cost
efficiencies and scale."
MIT is headquartered in Tokyo, Japan and has approximately 400
employees. The total acquisition consideration inclusive of assumed debt
is approximately $134.3 million. SYNNEX will have approximately an 80%
ownership interest in MIT. The closing of the acquisition, which is
subject to customary closing conditions, is expected to occur in early
December, 2010. The acquisition is expected to take approximately one
year to fully transition before MIT drives EPS accretion and ROIC
contributions to SYNNEX' consolidated results of operations.
About Marubeni Corporation
Marubeni Corporation was founded in 1858 and is one of Japan's largest
corporations. Marubeni is involved in the handling of products and
provision of services in a broad range of sectors. These areas encompass
importing and exporting , as well as transactions in the Japanese
market, related to food, textiles, materials, pulp and paper, chemicals,
energy materials and mineral resources, transportation machinery, and
offshore trading, Marubeni has over 5,600 employees and 118 offices in
71 countries/areas. Marubeni is traded on the Tokyo Stock Exchange.
About SYNNEX
SYNNEX Corporation, a Fortune 500 corporation, is a leading business
process services company, servicing resellers, retailers and original
equipment manufacturers in multiple regions around the world. The
Company provides services in IT distribution, supply chain management,
contract assembly and business process outsourcing. Founded in 1980,
SYNNEX employs over 7,000 associates worldwide and operates in the
United States, Canada, China, Japan, Mexico, the Philippines and the
United Kingdom. Additional information about SYNNEX may be found online
at www.synnex.com.
Safe Harbor Statement
Statements in this press release regarding SYNNEX Corporation, which are
not historical facts, are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. These forward-looking statements
may be identified by terms such as believe, expect, may, will, provide,
could and should and the negative of these terms or other similar
expressions. These statements, including statements regarding
anticipated vendor leverage, our ability to drive market growth, our
ability to enhance MIT's operations, ease of transition, the ability to
accelerate operating and financial objectives, anticipated benefits to
MIT's customers, our ability to strengthen and grow MIT's vendor and
customer relations, MIT's profitability and market share, timing of
closing and anticipated impact of MIT on our financial operations and
the timing of these benefits, are subject to risks and uncertainties
that could cause actual results to differ materially from those
discussed in the forward-looking statements. These risks and
uncertainties include, but are not limited to: our ability to close the
transaction, the successful transition of MIT, our ability to gain
market share in Japan, loss of MIT's vendors and customers, general
economic conditions and any weakness in IT and consumer electronics
spending; the loss or consolidation of one or more of our significant
OEM suppliers or customers; market acceptance and product life of the
products we assemble and distribute; competitive conditions in our
industry and their impact on our margins; pricing, margin and other
terms with our OEM suppliers; our ability to gain market share;
variations in supplier-sponsored programs; changes in our costs and
operating expenses; risks associated with our international operations;
supply shortages or delays; any termination or reduction in our floor
plan financing arrangements; credit exposure to our reseller customers,
and negative trends in their businesses; and other risks and
uncertainties detailed in our Form 10-Q for the fiscal quarter ended
August 31, 2010 and from time to time in our SEC filings. Statements
included in this press release are based upon information known to
SYNNEX Corporation as of the date of this release, and SYNNEX
Corporation assumes no obligation to update information contained in
this press release.
Copyright 2010 SYNNEX Corporation. All rights reserved. SYNNEX, the
SYNNEX Logo and all other SYNNEX company, product and services names and
slogans are trademarks or registered trademarks of SYNNEX Corporation.
SYNNEX and the SYNNEX Logo Reg. U.S. Pat. & Tm. Off. Other names and
marks are the property of their respective owners.
Source: SYNNEX Corporation — F
SYNNEX Corporation
Lori Barker, 510-668-3715
Sr. Director,
Investor Relations
lorib@synnex.com
Source: SYNNEX Corporation
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