Syspro, the South African software company that became a global success story, has been sold to private equity investor Advent International for an undisclosed sum.
Syspro was founded in September 1978 by brothers Phil and Chris Duff, who spotted a gap in the market for business software. Today, the company employs around 400 people globally and serves customers across six continents, with headquarters in the UK and South Africa.
Phil Duff, co-founder and chairman of Syspro.
Phil Duff, who will step down as chairman of Syspro at the end of September 2024, comments: “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.”
Advent is one of the world’s largest and most experienced private equity investors. It has signed a definitive agreement to invest and acquire a majority ownership stake in Syspro, which is today a global leader within its key market verticals of manufacturing and distribution.
The transaction will accelerate Syspro’s global growth ambitions through additional investment to support next generation product and technology innovation, as well as unlock growth opportunities in key markets, including the USA and UK.
When Duff steps down, Mike Ettling, previously the president of SAP SuccessFactors and who is presently the CEO of Unit4, will join Syspro as chairman of the board.
Jaco Maritz, who was appointed CEO of Syspro in 2022 and will continue to lead the company, says: “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.”
Mark Wilson, CEO of Syspro EMEA and APAC, stresses the significance of the transaction for a local software company. “Syspro really is a local legend, adding value to manufacturers and distributors for 46 years.
“In the South African context, we have a phenomenal customer base in a number of different industry verticals. For these customers, Syspro is the backbone of a lot of successful customer automation and process improvements over the years.”
Mark Wilson, CEO of Syspro EMEA and APAC.
It is these customers that have made Syspro a software success, Wilson adds. “We have worked with so many customers for so many years. And now, with the backing of Advent, we can take the business to a new level.”
Maritz adds that the local connection continues with the appointment of Ettling to the board as he is also a South African who has been working in the UK and US since 1997.
Although Maritz and Wilson don’t anticipate many operational or management changes over the coming months, they are enthusiastic about the new opportunities that being part of the Advent portfolio will offer.
Advent has made successful investments in ERP, financial and manufacturing software. Recent investments in the sector include Aareon, a European provider of Software-as-a-Service (SaaS) solutions for the property industry; Unit4, a global cloud ERP software vendor; Medius, a global leader in AP automation, B2B payments, sourcing and procurement software; and Prometheus Group, a global provider of enterprise asset management software.
Jaco Maritz, CEO of Syspro.
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.
Maritz comments: “Advent gives us access to capital, and the backing to make new journeys into areas like artificial intelligence (AI, subscription services, cloud and more. They have already done many of the things we need to embark on, so they bring not only capital but also expertise and capabilities.”
Douglas Hallstrom, director at Advent International, says: “We have been following Syspro for some time and are delighted to support the company into a new phase of ambitious innovation and growth acceleration.”
Christian Braunfisch, assistant director at Advent International, adds: “Advent has deep experience in the enterprise application industry and we are excited to bring the best of Advent to support the company, and to partner with Mike and the Syspro team in building a long-term global category leader.”
Importantly, new product development will continue to take place in South Africa, as has been the case for the past 46 years. “We do have people at other locations, but all reporting lines are back to the central business in South Africa,” Wilson explains.
“For the past 46 years, the Syspro product has been developed in South Africa, with South African skills, for South African businesses. This is something we are exceptionally proud of: that the quality of our resources is such that we can take a world-class product to market locally and globally.”
In terms of go-to-market, Wilson says it will be business as usual for customers and channel partners.
“We will follow our model of high customer intimacy and strong channel-centricity,” he says. “Customers and partners can rest assured that this transaction will only enhance their businesses.”
The deal will be finalised within the next few months, Maritz says. The transaction has been concluded, with just Competition Commission in South Africa and Anti-Trust compliance in the US to conclude.