Canadian private equity firm Novacap has made a strategic investment in Syntax, a Montréal-based provider of hardware, software and cloud technology solutions to Canadian and U.S. businesses. No financial terms were disclosed. Novacap made the investment via its fourth technology fund Novacap TMT IV, which raised $375 million in May 2014, and in partnership with Syntax’s senior management. The company said the investment will accelerate the growth of its cloud offerings and allow it “to grow into a major player within the North American market.” Founded in 1972, Syntax is led by CEOs and Co-Presidents Ryan Etinson and Kenny Etinson.
NOVACAP Makes Strategic Investment in Syntax
Montreal – July 6, 2016 – NOVACAP, one of Canada’s leading private equity firms, today announced that it has made a strategic investment in Syntax, a Montreal-based company that provides comprehensive technology solutions to businesses throughout North America. This investment will further accelerate the growth in Syntax’s cloud offerings, including their best in class Enterprise Cloud for ERP, a unique offering that safely hosts and manages critical business applications.
The transaction is being financed through the NOVACAP TMT IV Fund, which specializes in partnering with exceptional companies that have high growth potential in the technology, media and telecommunications sectors. Syntax was advised by MVP Capital (MVP), an investment banking firm serving companies in the technology, media, telecom and renewable energy sectors. Syntax CEOs and Co-Presidents Ryan and Kenny Etinson and Founder and Principal Michael Etinson will continue to operate the business and keep a significant stake in the company.
Since 1972 thousands of customers have trusted Syntax with their IT services and ERP needs. From their multiple offices in Canada and across the U.S., Syntax has been developing and implementing ERP solutions for use across North America. Since 1997, Syntax has focused on JD Edwards EnterpriseOne and JD Edwards World while supporting and enhancing its SDM product line. Today, as an Oracle Platinum Partner and IBM Premier Partner, Syntax is a leader in providing cloud and implementation services for JD Edwards.
“After having successfully achieved the transfer from the previous generation, we felt that it was now time to take the company to the next level, said Ryan Etinson, Syntax Co-President and CEO. NOVACAP’s support and capitalization will allow the company to grow into a major player within the North American market.”
“Our clients face ever increasing demands to provide the highest service levels, often with constrained in-house resources, said Kenny Etinson, Ryan’s brother and also Co-President and CEO. Our business model is based on offering products and services that enable organizations to modernize their back-office operations, empower their people, and maximize their value. We appeal to them because we are taking care of their IT environment in a cost-effective manner, so that they can focus on their business.”
“We were impressed with Syntax’s unique ERP integration model, said Ted Mocarski, Senior Partner at NOVACAP. The company already ranks at the industry forefront and is a clear leader in providing the in-depth knowledge and experience demanded for the JD Edwards solution set. We strongly feel that the outsourcing possibilities offered through their products and services offer a major growth potential with companies looking to improve their ERP hosting solutions.”
With assets under management of over $1.6 billion, NOVACAP has consistently been recognized as one of the leading private equity firms in Canada since 1981. Its unique collaborative approach with entrepreneurs, based on deep operational expertise and active management of its investment, has helped accelerate growth and maximize value of more than 85 companies across North America. NOVACAP’s culture is based on creating long-term value through an investment philosophy focused on discipline and growth. With an experienced management team and substantial financial resources, NOVACAP is well positioned to continue building world-class companies. For more information, please visit www.novacap.ca.
Since 1972, Syntax has been providing comprehensive technology solutions to businesses of all sizes throughout North America. Syntax delivers the best combination of software, infrastructure, and cloud solutions to meet the needs of its diverse range of customers. Syntax partners include Oracle, IBM and other world-class technology leaders. Learn more about Syntax by visiting www.syntax.com
ABOUT MVP CAPITAL
Providing strategic counsel and financial services, mergers and acquisitions advisory services, private equity and debt raises, valuations and appraisals, MVP Capital has completed over $18 billion in transactions and focuses on clients in the technology, telecom, towers, datacenter, hosting, media and renewable energy industries. Founded in 1987, MVP has offices in San Francisco, Boulder, Kansas City, New York and Boston. Securities and Advisory Services are offered through Financial Telesis Inc., member SIPC/FINRA. For further information, visit www.mvpcapital.com.
NOVACAP: Valérie Gonzalo, AGO communications
Syntax: Elan Etinson
514-733-7777 x 7222
Photo courtesy of Syntax