Research Desk Line-up: Envestnet Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 8, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for SYNNEX Corp. (NYSE: SNX). The Company announced on June 05, 2017, that it has entered into a definitive agreement with Datatec Ltd, under which it would acquire Datatec's Westcon-Comstor Americas business. Post the transaction, SYNNEX will become a minority shareholder in Datatec's Westcon EMEA and APAC businesses. For immediate access to our complimentary reports, including today's coverage, register for free now at:
Discover more of our free reports coverage from other companies within the Business Services industry. Pro-TD has currently selected Envestnet, Inc. (NYSE: ENV) for due-diligence and potential coverage as the Company reported on May 10, 2017, its financial results for Q1 2017 which ended on March 31, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Envestnet when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SNX; also brushing on ENV. Go directly to your stock of interest and access today's free coverage at:
Details of the Transaction
SYNNEX will pay a total of $600 million for the acquisition, which is structured in the form of $500 million in stock and $100 million in cash, at the closing of the transaction. The Company will also facilitate up to $200 million earns out if certain financial milestones are achieved through February 2018. SYNNEX will pay $30 million for the 10% minority stake in Datatec's Westcon EMEA and APAC businesses. The Company will assume about $115 million of net debt and refinance it with the close of the transaction. SYNNEX holds the option to execute the agreement in an all-cash transaction, based on the average share price at closing.
The Westcon-Comstor Business
The Westcon-Comstor is a value-added technology distributor of category-leading solutions in Security, Collaboration, Networking, and Data Center. The Westcon Americas business generated net revenues of about $2.2 billion for full-year FY16, ending February 28, 2017. In the first 12 months, post the closing, the Westcon Americas business, excluding transaction expenses, intangible amortization, and integration costs, is expected to be mildly accretive to the Company's non-GAAP EPS. The transaction is expected to close in the Q3 2017, subject to satisfaction of regulatory requirements and customary closing conditions. The Companies will continue to operate independently till the transaction is completed.
SYNNEX views this acquisition as a transformational step and finds the business complementary to its portfolio, where technology is growing. Westcon-Comstor, being a leader in the Security, UCC and networking space, offers global expansion opportunities as the Companies share a common vision to address the global complexities and emerging demands of their respective clients.
On May 09, 2017, SYNNEX announced that it has been designated as the exclusive North American distributor of HP's Jet Fusion 3D Printing solution. According to a report, the enterprise 3D market is set to grow at 57.4% for the next three years. During this rapid period of growth, this agreement offered SYNNEX the opportunity to ease resellers' entry and expansion in the 3D printing segment. SYNNEX is the only HP distribution partner in the US authorized for all HP printer products and is the source for the HP Jet Fusion 3D solution and materials.
Prior to the announcement, on April 20, 2017, the Company was selected by Symantec Enterprise security solutions, to deliver its full portfolio. The addition of the full Symantec security portfolio offered SYNNEX the scale to address the ever-evolving threat landscape as well as the changes and challenges presented due to rapid market shift to mobile and cloud ecosystems.
On March 29, 2017, SYNNEX expanded its networking portfolio by adding the Brocade Ruckus ICX campus switches. The expanded capabilities are delivered through SYNNEX's CONVERGESolv Advanced Technologies support platform, designed to help resellers advance technologies that support third-party infrastructures and deployment.
Last Close Stock Review
SYNNEX's share price finished yesterday's trading session at $114.77, slightly advancing 0.17%. A total volume of 227.46 thousand shares exchanged hands, which was higher than the 3 months average volume of 195.76 thousand shares. The stock has surged 5.43% and 20.22% in the last one month and past twelve months, respectively. The stock is trading at a PE ratio of 18.36 and has a dividend yield of 0.87%. The stock currently has a market cap of $4.61 billion.
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily