FREMONT, Calif. & CLEARWATER, Fla. - TD (TSX:TD) SYNNEX Corporation (NYSE: NYSE:SNX), a prominent distributor and solutions aggregator for the IT ecosystem, disclosed today a secondary public offering of 9 million shares of its common stock.
These shares are presently held by affiliates of Apollo Global Management (NYSE:APO), Inc. The underwriters have been granted an option to buy up to an additional 1.35 million shares from the selling stockholders.
The company is also executing a Concurrent Share Repurchase, agreeing to buy back 500,000 shares from the underwriters, with a total repurchase price not exceeding $60 million. This repurchase is part of TD SYNNEX's ongoing share repurchase program and will be financed using the company's existing cash reserves. TD SYNNEX will not sell any shares nor receive proceeds from the selling stockholders' offering.
The joint bookrunners and underwriters for this offering include J.P. Morgan Securities LLC, Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., and Mizuho Securities USA LLC. The offering is made through a prospectus and prospectus supplement, part of the shelf registration statements that became effective on September 2, 2021, and October 10, 2023.
TD SYNNEX has established itself as a leader in the IT sector, supporting over 150,000 customers in more than 100 countries. The company is headquartered in Clearwater, Florida, and Fremont, California, and employs approximately 23,000 people.
It partners with over 2,500 technology vendors, delivering solutions across various high-growth segments such as cloud, cybersecurity, big data/analytics, artificial intelligence, the Internet of Things, mobility, and as-a-service offerings.
The company's forward-looking statements indicate that the proposed offering's completion is subject to market conditions and customary closing conditions. TD SYNNEX has cautioned that actual results may differ from those projected due to various risks and uncertainties.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation to buy securities. The sale of these securities will not be lawful in any jurisdiction without registration or qualification under the applicable securities laws.
InvestingPro Insights
TD SYNNEX Corporation (NYSE: SNX) has been active in capital allocation strategies that may be of interest to investors. According to InvestingPro Tips, the management at TD SYNNEX has been aggressively buying back shares, signaling confidence in the company's value.
Furthermore, the company has a track record of rewarding shareholders, having raised its dividend for 3 consecutive years, and maintaining dividend payments for 11 consecutive years.
On the financial front, InvestingPro Data shows that TD SYNNEX holds a market capitalization of approximately $10.08 billion. The company's P/E Ratio stands at a moderate 16.61, with an adjusted P/E Ratio over the last twelve months as of Q1 2024 at 12.8.
Investors might also take note of the company's strong free cash flow yield, as indicated by its valuation metrics. Additionally, TD SYNNEX's recent performance has been notable, with a significant return over the last week, amounting to a 7.56% total price return.
For those looking to delve deeper into TD SYNNEX's financial health and investment potential, InvestingPro offers a wealth of additional tips and metrics. For instance, the platform provides insights into the company's revenue growth, operating income, and return on assets.
Interested readers can explore these metrics and more by visiting https://www.investing.com/pro/SNX. Plus, by using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information. With 16 more InvestingPro Tips available, investors can gain a comprehensive understanding of TD SYNNEX's market position and performance trends.
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