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SYNNEX Canada Limited, a wholly-owned subsidiary of SYNNEX Corporation (NYSE:SNX), announced today that it has signed a definitive agreement to acquire substantially all of the assets of Supercom Canada Ltd. (Supercom), a leading Canadian distributor of IT and consumer electronics products and services. The acquisition of Supercom enriches SYNNEX Canada’s existing product and service offerings, thereby enhancing its ability to serve customers throughout Canada.
“Over the past twenty-four years, Frank Luk and Supercom have built an enviable reputation in the Canadian IT market,” stated Kevin Murai, President and CEO of SYNNEX Corporation. “We are excited to have the Supercom team as part of our Company.”
“We are delighted to join SYNNEX Canada,” said Frank Luk, President of Supercom. “I want to thank all my employees, vendor partners and customers for their loyalty and support to Supercom and I look forward to continuing to work with them under the combined SYNNEX Canada.”
“With the complementary partnerships and capabilities Supercom brings, SYNNEX Canada looks forward to better serving its enhanced base of customer and vendor partners,” said Mitchell Martin, President of SYNNEX Canada Limited. “I look forward to partnering with Frank to make SYNNEX the largest distributor in Canada.”
Pursuant to the asset purchase agreement, SYNNEX Canada will pay a purchase price of approximately CDN $36.5 million in cash. This includes approximately CDN $4.5 million in deferred payments, subject to certain post-closing conditions, payable within 18 months. In connection with the assets acquired, SYNNEX Canada will assume approximately CDN $30.3 million in working capital debt. Expected goodwill and intangibles from the transaction will be approximately CDN $10 million. The transaction, which is subject to regulatory and other approvals, is expected to close in April 2013.
As part of the transaction, Mr. Luk has agreed to join SYNNEX Corporation as Senior Vice President, Partner Advocacy reporting directly to Kevin Murai. He will own and further develop key vendor and customer partnerships for the U.S., Canada, and Japan and assist in the integration of the businesses.