Nucor earnings beat by $0.08, revenue fell short of estimates
FREMONT, Calif. - TD SYNNEX (NYSE:SNX), a prominent player in the Electronic Equipment industry with a market capitalization of $11.1 billion, has acquired Apptium, a software development company that provides cloud commerce platform solutions, according to a press release issued by the company. The acquisition aims to strengthen TD SYNNEX’s technology solutions orchestration strategy and expand its cloud and everything-as-a-service offerings. According to InvestingPro analysis, TD SYNNEX appears undervalued based on its Fair Value metrics, with strong financial health indicators supporting its expansion strategy.
Apptium previously served as a key partner in the development of TD SYNNEX’s StreamOne platform, which forms the foundation of the company’s digital business orchestration strategy. The platform enables ecosystem partners to make data-driven decisions and access customer insights and solutions aggregation. With annual revenue exceeding $60 billion and a healthy EBITDA of $1.67 billion, TD SYNNEX demonstrates strong operational execution in its digital transformation initiatives.
"Rick Kapani and his team have built a transformative platform that has already delivered a meaningful impact underpinning our own solutions orchestration capabilities," said Patrick Zammit, CEO of TD SYNNEX.
Founded in 2014 and based in Reston, Virginia, Apptium will continue to operate as a wholly owned subsidiary to maintain its entrepreneurial culture and innovation pace. Founder Rick Kapani will remain as General Manager and Senior Vice President, reporting to TD SYNNEX’s Chief Strategy and Technology Officer.
The acquisition brings together expertise in technology, communications, services, and managed solutions industries. Apptium’s platform-as-a-service offering enables companies to implement marketplaces with an emphasis on configuration over code, supporting accelerated implementation and streamlined management.
According to the company, the platform addresses challenges of subscription and consumption-based IT service models while simplifying the management of multiple cloud providers in a single platform. Apptium will continue serving its existing customers via the Apptium Cloud Commerce Platform.
TD SYNNEX, headquartered in Clearwater, Florida, and Fremont, California, serves more than 150,000 customers in over 100 countries with IT products, services and solutions from approximately 2,500 technology vendors. The company has maintained dividend payments for 12 consecutive years and currently offers a 1.3% yield, reflecting its commitment to shareholder returns. For deeper insights into TD SYNNEX’s financial health and growth potential, including additional ProTips and detailed valuation metrics, visit InvestingPro, where you’ll find comprehensive analysis in our Pro Research Report.
In other recent news, TD Synnex reported strong financial results for the second quarter of fiscal year 2025, surpassing analysts’ expectations. The company achieved non-GAAP diluted earnings per share of $2.99, exceeding the forecasted $2.71, with revenue reaching $14.95 billion, above the anticipated $14.3 billion. The company saw a 7% year-over-year revenue growth, with significant contributions from its Hyperscale segment and Endpoint Solutions, which experienced a 13% increase in gross billings. Advanced Solutions, excluding the Hyve segment, grew by 10%, driven by demand in data center infrastructure, cloud, security, and AI technologies. The Hyve segment itself saw high-teen growth in gross billings, although its gross margin declined due to foreign exchange and mix factors. Analyst firms Loop Capital and UBS both raised their price targets for TD Synnex, with Loop Capital setting a new target of $160 and UBS increasing its target to $154. UBS also reiterated its buy rating, noting the company’s strong earnings performance and projecting fiscal year 2025 earnings per share to reach the high end of TD Synnex’s guidance range.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.