US-based private equity firm Advent International will acquire a majority stake in South African Syspro, one of the longest-standing privately-owned vendors of ERP software in the world.
Founded in 1978, Syspro specialises in the manufacturing and distribution industries, and has established a global footprint and channel partner network, with over 15 000 customers in more than 60 countries.
Speaking to ITWeb ahead of the official announcement, Syspro CEO Jaco Maritz said the deal, for an undisclosed amount, will support next-generation product and technology innovation and accelerate the company's growth ambitions in key markets, including the US and UK.
“This partnership not only validates our strategic realignment, but also provides us with the resources and expertise to further strengthen our position in the global market. We are excited about the opportunities this collaboration will bring and remain committed to delivering exceptional manufacturing and distribution software solutions to our customers worldwide,” commented Maritz.
Syspro has been scouting the market for an international partner with a strong track record in business acquisitions and expertise in enterprise software. Advent, an experienced software investor, fit the bill.
“In addition to a 34-year track record in technology investing, Advent brings a depth of experience in the manufacturing and industrial space, having invested $21 billion within the sector globally in the last 33 years," says the company in a statement.
Advent's recent investments include Germany's Aareon (SaaS solutions for the property industry), US-based Unit4 (global cloud ERP), Sweden's Medius (AP automation, B2B payments, sourcing and procurement), and Prometheus Group (enterprise asset management) in the Netherlands.
As part of the transaction, Mike Ettling, an experienced software business leader who was previously president of SAP SuccessFactors and is presently CEO of Unit4, will join Syspro as chairman of the board.
The company's founder and chairman Phil Duff will retire at the end of September.
Commenting on the deal, Duff said: “I have been at the helm of Syspro for 46 years and have worked with incredible teams of people, customers and partners across the globe. As the company enters a new era, I'm confident Advent can foster continued growth and innovation.”
The deal is expected to close in late Q3, pending customary regulatory approvals and closing conditions.
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