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TD SYNNEX (SNX) Signs Distribution Deal With Palo Alto

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TD SYNNEX’s (SNX - Free Report) subsidiary Tech Data recently signed a distribution contract with Palo Alto Networks (PANW - Free Report) , a global leader in cybersecurity. Per the deal, Tech Data will provide a comprehensive suite of Palo Alto’s cybersecurity solutions to its customers and the reseller community in India & SAARC (South Asian Association for Regional Cooperation).

This contract expands TD SYNNEX’s Network Security portfolio further. It will help organizations in delivering secure and reliable innovations, which safeguard their customers from cyberattacks.

This contract also provides Palo Alto an opportunity to evolve further through access to new security partners and routes to market. The company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms. This can be attributed to the rise in remote work environment and the need for stronger security. Its network security gateways protect clients’ data, reduce security complexities and lower total cost of ownership.

This distribution contract with Palo Alto marks the first partnership deal for Tech Data following its creation after the merger of SYNNEX and Tech Data Corporation in September this year.

TD SYNNEX collaborated with another leading security company — Proofpoint — with the same vision, in July this year. In the same month, it signed a distribution agreement with DTEN, an international leader for innovation and accessibility in video conferencing.

Founded in 1980, TD SYNNEX is a Fortune 200 company specialized in providing comprehensive logistics, integration services and technology solutions to its partners for enhancing their customer engagement strategies. It additionally offers financial incentives and assistance with renewal automation.

Hence, collaboration with one of the best cybersecurity companies will help it strengthen global footprint via the extension of its security portfolio.

Zacks Rank & Key Picks

TD SYNNEX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Littlefuse (LFUS - Free Report) and Avnet (AVT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate of Littlefuse and Avnet are pegged at 12% and 25.4%, respectively.