Synnex grabs Redington stake

Synnex Technology International, Taiwan’s largest IT distributor, has splashed out US$24m to pick up a 36% stake in Redington Group. The deal marks the latest step in Synnex’s quest to beef up its regional credentials and develop a presence in fast-growing markets such as India, the Middle East and Africa.

  • E-Mail
By  Stuart Wilson Published  November 19, 2004

Synnex Technology International, Taiwan’s largest IT distributor, has splashed out US$24m to pick up a 36% stake in Redington Group. The deal marks the latest step in Synnex’s quest to beef up its regional credentials and develop its presence in fast-growing markets such as India, the Middle East and Africa. Synnex will look to push its vendor product portfolio through Redington’s extensive channel network. In total, Redington boasts a network of 31 offices, 42 warehouses and 39 service centres across India, the Middle East and Africa (MEA). Redington’s MEA presence covers major markets including the UAE, Saudi Arabia, Iran, Egypt, Qatar, Oman and Nigeria. Redington’s group sales hit US$655m in 2003 according to Evans Tu, president at Synnex. The two companies will also look to improve Redington’s logistics management and enhance overall efficiency. With close links to major Taiwanese vendors including Asustek Computer, Acer and BenQ, Synnex will look to expand the sale of these products through Redington. Synnex has already expanded across Asia-Pacific after setting up operations in China, Hong Kong, Thailand and Australia in 1987. The company also owns a stake in NASDAQ-quoted Synnex Corporation, a US distributor established in 1980. Synnex hopes that sales from operations outside Taiwan will eventually contribute 90% of its total revenues. Synnex Technology International is itself part of the MiTAC-Synnex Group, an IT conglomerate comprising 40 separate companies and boasting more than 20,000 employees worldwide. The group expects sales of US$10bn in 2004, up from US$7.9bn in 2003. The strategic investment in Redington marks another step forward in the evolution of the distribution channel in MEA. As the market matures, more global distributors will target the region looking to build genuine economies of scale.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code