FREMONT, Calif. & CLEARWATER, Fla. - TD SYNNEX Corporation (NYSE: NYSE:SNX), a global IT distributor and solutions aggregator, announced today a secondary public offering of 5,309,299 shares of its common stock. The shares are owned by entities managed by Apollo Global Management (NYSE:APO), Inc. affiliates, marking the exit of these entities as stockholders.
Concurrently, TD SYNNEX has also authorized a repurchase of 1,750,000 shares as part of the same offering, which will be funded from existing cash on hand.
This repurchase is consistent with the company's ongoing share repurchase program. TD SYNNEX will not sell any shares in the offering and will not receive proceeds from the Selling Stockholders' share sale. The underwriters for the offering include J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, and RBC Capital Markets, LLC.
The proposed offering is being made through a prospectus supplement and accompanying prospectus as part of a shelf registration statement filed with the Securities and Exchange Commission (SEC), which became effective on September 2, 2021, and October 10, 2023.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities, and there will be no sale in states or jurisdictions where such offering, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such jurisdiction.
TD SYNNEX, headquartered in Clearwater, Florida, and Fremont, California, serves over 150,000 customers across more than 100 countries. With approximately 23,000 employees, the company brings together IT products, services, and solutions from over 2,500 technology vendors.
TD SYNNEX focuses on high-growth technology segments such as cloud, cybersecurity, big data/analytics, AI, IoT, mobility, and everything as a service.
The completion of the public offering is subject to market conditions and other customary closing conditions. This press release includes forward-looking statements, and actual results may differ materially from those expressed or implied, with risks and uncertainties that could affect the completion of the offering.
The information provided in this article is based on a press release statement from TD SYNNEX.
InvestingPro Insights
As TD SYNNEX Corporation (NYSE: SNX) navigates through its secondary public offering and concurrent share repurchase, investors are closely monitoring the company's financial health and market performance.
According to InvestingPro data, TD SYNNEX has a market capitalization of approximately $10.12 billion, with a Price to Earnings (P/E) ratio of 17.02, reflecting investor confidence in the company's earnings potential. Notably, the company's P/E ratio adjusted for the last twelve months as of Q1 2024 stands at a lower 12.99, suggesting a more attractive valuation relative to its historical earnings.
InvestingPro Tips highlight several key points that could be of interest to current and potential investors. TD SYNNEX's management has been actively engaged in share buybacks, demonstrating a commitment to returning value to shareholders.
This aligns with the company's recent authorization to repurchase 1,750,000 shares. Furthermore, the company boasts a high shareholder yield and has consistently raised its dividend for 3 consecutive years, with the latest dividend growth reported at 14.29%.
These financial moves by TD SYNNEX are underscored by a solid track record of profitability over the last twelve months and a strong return over the last five years. Investors may find additional insights and tips, including the company's low revenue valuation multiple and its status as a prominent player in the Electronic Equipment, Instruments & Components industry, by exploring InvestingPro's full suite of analytics. For those interested in a deeper dive, InvestingPro offers 15 more tips on TD SYNNEX, which can be accessed with an exclusive 10% discount using the coupon code PRONEWS24 for a yearly or biyearly Pro and Pro+ subscription.
Looking ahead, TD SYNNEX is slated to announce its next earnings on June 25, 2024. With the company trading near its 52-week high and analysts predicting profitability for the year, the upcoming earnings report will be a significant event for both the company and its stakeholders.
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