In a statement   Synnex Corp, an IT solutions firm said, it will merge with Tech Data in a deal worth about $7.2 billion, including debt. The combined company will create one of the world’s biggest IT distribution companies. With the news reaching the market Synnex’s shares surged by 6.5%.

The merger comes less than a year after Apollo Global Management took Tech Data private in a $6 billion deal; it comes at a time when both Synnex and Tech Data benefited from the pandemic-driven acceleration in digital transformation with lockdowns forcing more people to work from home.

Following the merger, Synnex shareholders will own about 55% of the combined company, while Apollo will own the rest and take four board seats. The deal is expected to close in the second half of this year. The combined company expects to generate $57 billion in estimated annual revenue,

Apollo will receive 44 million shares of Synnex common stock, and the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion.

According to a source familiar with the matter at hand, Tech Data had approached Synnex late last year following Synnex’s spinoff of its customer experience division Concentrix Corporation.

With an employee strength of more than 22,000, the combined company will operate in more than 100 countries.