You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Today is important and transformative day for the technology distribution industry as SYNNEX and Tech Data come together.
For over four decades we have each worked to help our customers and partners grow and achieve their strategic priorities.
We have both been leaders in the space and I and the entire SYNNEX management team have the utmost respect for the team at Tech Data and what they have created.
Like us, Tech Data has established a reputation for excellence and we are thrilled to partner with its 14,000 plus talented colleagues.
For SYNNEX, this combination is beneficial as it accelerates our strategic growth initiatives by multiple years versus what we could have done by acquiring several smaller, geographically diverse companies.
Thus, the combined company will be able to bring additional services and capabilities to our respective partners.
Even with a well planned and executed strategy, I'm not sure we could have achieved -- over time -- all that is accomplished with this merger.
For our investors, we have the opportunity to create value by accelerated revenue growth, scaled efficiencies, increased cash flow and greater earnings power.
I am pleased to be able to partner with Rich Hume and the go-forward combined entity.
Rich is a talented leader with significant industry expertise and we're fortunate to have him as the CEO of the business going forward.
[Technical Issues] the transformative transaction we are about [Technical Issues] I along with our shareholder Apollo, believe combining our business with SYNNEX accelerates the momentum that was already under way to create growth opportunity that neither company could achieve independently.
The combined company will deliver superior value for shareholders, offer our customers and vendors exceptional reach, efficiency and expertise across the entire technology ecosystem and be an employer of choice in the IT industry.
Importantly, together, we have the portfolio, the financial strength and the talent to enable us to achieve these objectives.
We will have premier, best-in-class, end-to-end offerings through a broad diversified portfolio of more than 200,000 products and solutions.
The combined company will be positioned to transform value creation from the linear model to the multi-point model, enabling collaboration among all of the ecosystem participants.
This will enable us to drive effective go-to-market strategies that our vendors can capitalize on and help to deliver optimal business-oriented solutions for their customers.
Our ability to orchestrate the access, interaction, delivery and services required to solve business challenges at scale is the foundation of how we will continue to grow.
As you know, change is constant in our business and this is a pivotal time in our industry.
Technologies such as cloud, analytics, IoT and security are changing our customers and their end user customers' buy, sell, consume and finance technology solutions causing the IT ecosystem to evolve faster than ever before.
This evolution has accelerated further due to the work-from-home and return to office trends which are contributing to explosive growth in these areas in which we are ideally positioned to serve.
The combined company will have a solid financial foundation, including an investment grade profile and strong free cash flows to support investments in our core growth platforms as well as investments in these next generation technologies.
The breadth and diversification of the combined company extends well beyond our products and solutions.
Together, SYNNEX and Tech Data will have a global footprint that serves more than 100 countries across the Americas, Europe and Asia Pacific.
This combination brings new market opportunities for both companies.
For example, SYNNEX has a well-established presence in Japan, where Tech Data does not.
Similarly, Tech Data is a well-established business across Europe, where SYNNEX has a more limited access.
This meaningful reach across products, services, geographies will also provide increased value and purchasing efficiencies to the combined companies' customers and vendors.
Both SYNNEX and Tech Data have excelled at driving top and bottom-line growth and has successfully acquired and integrated companies in the past.
I have full confidence that our combined team will deliver on the exciting growth underpinning this transformational merger, especially given the complementary values of our organization.
Very well said, and I'm looking forward to working with you to achieve all these benefits and also to continue to drive and support the great cultures each of the company's bring to this transaction.
Over to you, Marshall.
This transaction is valued at $7.2 billion, including net debt; and at close, SYNNEX will issue 44 million shares.
Pro forma ownership will be 55% SYNNEX shareholders and 45% Tech Data shareholders.
We expect the transaction to close in the second half of 2021, subject to customary closing conditions, including approval by SYNNEX shareholders and regulatory approvals.
From a financial perspective, the combined company will be on very solid footing with pro forma revenue of $57 billion, healthy EPS, EBITDA and cash flow generation.
We expect the transaction to be accretive to our non-GAAP diluted earnings per share by more than 25% in year one.
Given the complementary customer set and geographic footprints, we see the opportunity to generate revenue synergies as a combined company.
There is little overlap among our top customers and partners, and we believe SYNNEX's deep and narrow strategy combined with Tech Data's broad customer base minimizes risk regarding diversification.
From a cost perspective, we expect to realize $100 million of net synergies in year one, and $200 million in year two.
This transaction will be facilitated by a new capital structure that we will use to refinance debt at both Tech Data and SYNNEX.
It will consist of a $1.5 billion term loan A and $2.5 billion of unsecured bonds at varying maturities, bolstered by a $3.5 billion revolving credit facility, which we expect to be undrawn at close.
The expected cash balance at close will be approximately $1 billion.
We're also actively seeking to obtain our first investment grade credit rating and feel confident regarding the outcome.
As many of you are familiar with, SYNNEX has a long track record of diligently deleveraging post acquisitions.
We expect the same results with this transaction.
The expected leverage ratio of approximately 2.7 times at transaction close is expected to decline to approximately 2 times within 12 months.
With the combined entity generating LTM pro forma adjusted EBITDA of approximately $1.5 billion, this will provide us with ample ability to de-lever quickly while also remaining focused on optimizing the core and driving organic growth.
Now moving to Q1 fiscal results.
Our team delivered strong results ahead of internal expectations to start off the fiscal year, driven by continued robust broad-based demand.
Total revenue for Q1 was $4.9 billion, up 21% year-over-year.
Gross profit totaled $305 million, up 19% or $49 million compared to the prior year; and gross margin was 6.2%, consistent with the prior year.
Total adjusted SG&A expense was $149 million or 3% of revenue, up $9 million compared to the year-ago quarter and primarily due to COVID-19 related expenses.
We continue to expect incremental quarterly costs at a minimum of $5 million in 2021, and we did a good job of scaling SG&A to the growth of the business.
Non-GAAP operating income was $156 million, up $40 million or 35% versus the prior year; and non-GAAP operating margin was 3.2%, up 33 basis points over the prior year.
Q1 interest expense and finance charges were approximately $23 million and the effective tax rate was 25%.
Total non-GAAP income from continuing operations was $99 million, up $25 million or 34% over the prior year; and non-GAAP diluted earnings per share from continuing operations was $1.89, up from $1.42 in the prior year.
Now turning to the balance sheet.
Total debt of approximately $1.6 billion and net debt was less than $200 million.
Accounts receivable totaled $2.4 billion and inventories totaled $2.6 billion as of the end of Q1.
Our cash conversion cycle for the first quarter was 32 days, 25 days lower than the prior year and the decrease was driven by DSO improvements and better inventory turns.
Cash generated from operations was approximately $25 million in the quarter; and including our cash and credit facilities, we had approximately $2.8 billion of available liquidity.
We are pleased to report that our Board of Directors have approved a quarterly cash dividend of $0.20 per common share for the quarter.
The dividend is expected to be paid on April 30, 2021 to stockholders of record as of the close of business on April 16, 2021.
Now moving to our outlook for fiscal Q2.
We expect revenue in the range of $4.7 billion to $5 billion.
Non-GAAP net income is expected to be in the range of $94.9 million to $105 million and non-GAAP diluted earnings per share is expected to be in the range of a $1.80 to $2.00 per diluted share based on weighted average shares outstanding of approximately 51.8 million.
Our non-GAAP net income and non-GAAP diluted earnings per share guidance excludes the after-tax cost of $7.3 million or $0.14 per share related to the amortization of intangibles and $4.8 million or $0.09 per share related to share-based compensation.
For the full fiscal year, we continue to expect a healthy IT spending environment, driven by gradually increasing investments in technology enablement.
We expect full year fiscal 2021 non-GAAP diluted earnings per share of approximately $8 per share.
I'm very proud of our associates and the excellent first quarter results that we have delivered.
In Q1, we continued to navigate an unpredictable environment; but through it all, the team again showed flexibility, creativity and dedication to find innovative ways to support our customers and partners with exceptional service.
Our results above our internal expectations were driven by healthy broad-based demand across all our businesses as remote capability and digital transformation investments continued.
Similar to the past few quarters, we saw strong demand for client devices like notebooks and Chromebooks, as well as continued demand for security, cloud, collaboration solutions and related services.
We also saw improvements in areas like enterprise solutions, including server and networking.
Our performance came from across all our customer segments with really no exception in the contribution to the growth in the quarter.
From a geographical perspective, all regions performed well, with Canada and Japan exceeding expectations by the most.
Turning to our Q2 outlook.
Our priority remains on the health and safety of our associates.
Overall, we are encouraged about the IT and spending environment so far in 2021.
As we move closer to a sense of normalcy, it appears investment, especially in IT, is following.
For our Q2, with ongoing execution, we anticipate our business will continue to grow better than the market as our guidance implied a mid to upper single digit year-over-year growth rate.
Perhaps we're being a bit cautious with our expectations for the second quarter given the demand environment is fairly strong currently, evident by our ongoing high backlog and that on-premise purchasing activity is picking up each quarter.
However, given how much we over performed in Q1 and how early we are in Q2, we will start with the current range we have provided.
Overall, we are pleased with the trajectory of our business, evident by Marshall calling out our earnings per share expectations for the year.
As I wrap up, and touching again on the Tech Data merger announcement, those who have followed our space for many years know that M&A has been an important part of this industry.
We and Tech Data have both participated in many transactions over the years and have built up a wealth of knowledge and experience on how to have a successful outcome ensuring that value creation is delivered.
I believe we are very well situated given the strong cultural fit, knowledge of the industry, customers and partners and a strong and talented combined workforce.
We are developing a robust integration plan, and we'll share more with you as we get closer to the transaction close.
We are very excited by the possibilities that this deal creates for our combined company and look forward to realizing the significant value that should produce for our customers, partners, associates and shareholders.
In closing, we remain very focused on our core business.

user
sees q2 non-gaap earnings per share $1.80 to $2.00.
sees q2 revenue $4.7 billion to $5.0 billion.
qtrly non-gaap diluted earnings per share from continuing operations $1.89.

assistant