Shyft Global Services, a Division of TD SYNNEX, to Acquire Cokeva, Inc.
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Insights
The acquisition of Cokeva by Shyft Global Services, a division of TD SYNNEX, represents a strategic expansion in the IT equipment repair and refurbishment sector. This move is indicative of a growing trend where companies are looking to bolster their end-to-end service offerings, particularly in the technology lifecycle services arena. By integrating Cokeva's expertise and facilities, Shyft is poised to enhance its competitive edge in the market.
From a market perspective, this acquisition could signal Shyft's intention to capitalize on the circular economy, which is gaining traction as businesses and consumers alike become more environmentally conscious. The expanded capabilities in repair and refurbishment services not only align with sustainability trends but also respond to the increasing demand for cost-effective solutions in the management of technology equipment. The emphasis on quality certifications like ISO 9001:2015 and cleanroom standards demonstrates a commitment to maintaining high service standards, which is crucial for client retention and attracting new business in this industry.
The acquisition's financial implications are multifaceted. For TD SYNNEX and its Shyft division, the immediate benefit lies in the potential revenue growth from expanded service offerings and customer base. Cokeva's established reputation and client relationships in high-complexity IT repair could lead to cross-selling opportunities and operational synergies that enhance profitability.
Investors should monitor the integration process closely as the success of such acquisitions often hinges on the seamless merging of operations and cultures. In the long-term, the expanded global footprint and increased capacity could result in economies of scale, potentially improving margins. However, the upfront costs associated with acquisitions, such as this, can impact short-term financials and the return on investment will depend on the effective management of the newly acquired assets and the realization of projected synergies.
The acquisition of Cokeva by Shyft Global Services underscores a strategic move towards enhancing sustainability within the technology sector. By focusing on repair, test and refurbishment services, Shyft is reinforcing the circular economy model, which is a system aimed at minimizing waste and making the most of resources. This model is increasingly important as electronic waste becomes a significant environmental concern.
Shyft's investment in facilities that adhere to ISO 9001:2015 and ISO 5/Class 100 standards is commendable, as these certifications reflect a dedication to quality management and environmental responsibility. The emphasis on sustainability is not just a corporate responsibility initiative but also a business strategy that could resonate well with customers and investors who are increasingly valuing eco-friendly practices. This approach can lead to a strong brand reputation and loyalty, which are critical assets in today's market.
Acquisition of Cokeva will expand Shyft’s global repair capabilities, certifications and footprint
The addition of Cokeva expands Shyft’s depot repair service capabilities and unlocks additional opportunities for Shyft customers with Cokeva’s 220,000 sq. ft. operation in
“Shyft Global Services is excited to welcome Cokeva to our global team. The addition of Cokeva will provide customers the opportunity to leverage a broader range of end-to-end technology services,” said Ron Brinckerhoff, Senior Vice President of Shyft. “Adding more than 200 highly trained repair service experts, engineering resources and another world-class facility to our services portfolio will provide significant benefits for both Shyft and Cokeva customers.”
Founded in 1989, Cokeva has become an industry leader in the high-complexity, high-value and mission-critical IT repair, test and refurbishment market through its commitment to individualized customer service, impeccable quality, sustainability, competitive pricing and continuous improvements. The company has a long history of exceeding customer satisfaction benchmarks and being a highly rated supply chain partner for original equipment manufacturers (OEMs).
“When making this strategic decision for Cokeva, we knew we had found the right fit for both our employees and our customers,” said Ann Nguyen, CEO of Cokeva. “Shyft’s breadth of service capabilities — in repair and technology lifecycle services — and commitment to its customers are powerful indicators of what can be expected for Cokeva’s employees and customers. We are very proud of what our team has accomplished over the past 30+ years and can’t wait to see what comes next.”
“As the go-to repair services partner for many OEMs in IT, telecommunications, medical devices, retail and other industries, Shyft is strongly positioned to deliver on the service quality and customer experience required today,” said Brinckerhoff. “This acquisition further highlights Shyft’s investment in global sustainability with expanded circular economy capabilities as well as our commitment to providing flexible and eco-conscious repair services solutions that help technology OEMs reach their goals faster.”
About Shyft Global Services: Shyft Global Services is a leading technology lifecycle service provider that partners with companies around the world to shift the way they do business. Powered by a robust global logistics network, team of outsourcing experts and decades of experience, Shyft’s end-to-end product and customer lifecycle services enable technology companies to reinvest in growth, transformation and innovation. Ready to shift your business forward? Learn more at shyftservices.com. Shyft Global Services is a division of TD SYNNEX (NYSE: SNX).
About TD SYNNEX: TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We’re an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240102079981/en/
Tonja Gable
Shyft Global Services Marketing and Communications
tonja.gable@shyftservices.com
Source: TD SYNNEX
FAQ
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