SÃO PAULO - TD SYNNEX (NYSE: NYSE:SNX), a prominent global IT solutions distributor with a market capitalization of $10.5 billion, has announced the completion of its acquisition of the cloud migration business from IPsense, a Brazilian cloud solutions provider. This strategic move is aimed at bolstering TD SYNNEX's cloud capabilities in Brazil and lays the groundwork for a new cloud competency center in the region. According to InvestingPro data, the company maintains a strong financial health score, positioning it well for strategic expansions.
The acquisition is expected to enhance TD SYNNEX's ability to support its business partners in the digital transformation journey, enabling them to take advantage of the growing demand for cloud services. Otavio Lazarini, President of TD SYNNEX for Latin America and the Caribbean, expressed his enthusiasm for the integration of IPsense's cloud migration team into TD SYNNEX, highlighting the transaction's significance in delivering value to partners and their cloud business endeavors.
TD SYNNEX plans to incorporate IPsense's cloud migration business sales model into its existing two-tier distribution model. This integration is designed to foster partner-to-partner projects, drive collaboration, and build stronger alliances. The initiative aims to enable customers to leverage each other's expertise for mutual growth and success.
Headquartered in Clearwater, Florida, and Fremont, California, TD SYNNEX is a global distributor and solutions aggregator for the IT ecosystem, serving more than 150,000 customers across over 100 countries. With annual revenue exceeding $57 billion and a healthy P/E ratio of 15.9, the company has demonstrated strong market presence. The company's portfolio includes high-growth technology segments such as cloud, cybersecurity, big data/analytics, AI, IoT, mobility, and everything as a service. InvestingPro analysis reveals the company has maintained dividend payments for 11 consecutive years, with recent dividend growth of 14.3%.
The financial terms of the acquisition were not disclosed in the press release. This expansion into cloud services in Brazil is part of TD SYNNEX's ongoing efforts to help partners adapt to the evolving technological needs of their customers in the digital landscape. Based on InvestingPro analysis, TD SYNNEX appears undervalued relative to its Fair Value, suggesting potential upside for investors. The company's strong financial metrics and growth trajectory are detailed in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The information provided is based on a press release statement from TD SYNNEX.
In other recent news, TD SYNNEX has reported a notable increase in digital platform adoption and new digital routes-to-market among its cloud resellers and Managed Service Providers in North America. The company has appointed Tanuj Raja, a former Google (NASDAQ:GOOGL) executive, as the new Senior Vice President for North America Hyperscaler and Marketplace. In addition, TD SYNNEX has made significant amendments to its corporate bylaws, adjusting the voting threshold required for the board and shareholders to adopt, amend, or repeal bylaws.
TD SYNNEX's recent financial results show a 9% increase in gross billing and a 5% increase in revenue, driven by its Strategic Technologies sector. However, there has been a slight decline in gross margin due to increased investments in Hyve's capabilities. Loop Capital and Goldman Sachs have both maintained a Buy rating on TD SYNNEX, with Goldman Sachs projecting an 8% increase in revenue growth for the company in fiscal 2025.
These developments highlight TD SYNNEX's strategic growth plans and its focus on enhancing value across multiple technology categories. The company expects Q4 gross billings to range between $20.5 billion and $21.5 billion, with a projected non-GAAP diluted EPS of $2.80 to $3.30.
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