Syntax Systems has agreed to acquire Freudenberg IT (FIT), a Morrisville, North Carolina-based cloud provider and information technology service provider.
Terms weren’t released for the deal, which is expected to close in Q1 2019.
FIT, which manages SAP applications in the cloud for global enterprise customers, is being sold by Freudenberg Group, a German technology conglomerate.
Canadian mid-market private equity firm Novacap, which acquired Syntax in 2016, provided equity financing for the transaction.
Montréal-based Syntax is a provider of cloud-managed enterprise resource planning (ERP) services. It said the buy will extend its reach to the SAP ecosystem and create growth opportunities in Europe and Asia.
Acquisition of FIT – Syntax strengthens its global presence and expands addressable markets with the acquisition of Freudenberg IT (FIT), an SAP service provider
The Montreal-based company enters the SAP application market and brings its broad ERP expertise to European and Asian markets.
MONTRÉAL, Jan. 22, 2019 /CNW Telbec/ – Syntax Systems (Syntax), a leading provider of cloud managed ERP services, announced its agreement to acquire German IT services company Freudenberg IT (FIT). With more than 850 SAP professionals, FIT manages SAP applications in the Cloud for Enterprise customers in Europe, America and Asia. This strategic acquisition enables both companies to combine their specific strengths and serve new markets with a growing portfolio.
Syntax is a portfolio company of Novacap TMT IV and Novacap TMT V, a Montreal based private equity firm, which also provided the equity financing for the transaction.
This acquisition expands Syntax’s service offerings in the SAP market and complements existing business operations, making Syntax one of the most compelling multi ERP, multi cloud providers in the industry. Syntax can now provide end to end solutions for customers, offering them flexibility with both Oracle and SAP ecosystem expertise and serve them worldwide. Additionally, Syntax will leverage their current Private, Hybrid and Public cloud capabilities to accelerate FIT’s growth in SAP.
FIT is a global leader in managed IT services that specializes in helping companies optimize mission-critical technology that runs their businesses, using SAP applications. In fact, FIT has had a long-lasting relationship with SAP’s founding fathers who started collaborating with the Freudenberg Group, a parent company of FIT, almost 50 years ago.
Syntax and FIT share very similar client-centric corporate cultures, values and operating principles, which establish a solid base for cooperation, synergy and future growth.
“The acquisition of FIT represents an ideal investment for Novacap leveraging Syntax’s development as a global cloud service provider” commented Ted Mocarski, a Senior Partner at Novacap and Chairman of the Syntax Board of Directors. ” FIT’s strong position in the market represents an exciting growth opportunity for Syntax. We look forward to supporting and working with Syntax through this exciting part of its history.”
“We are excited by the opportunity of joining forces with FIT and extend our reach to the SAP ecosystem. This acquisition will enable us to increase our presence in geographies we had previously targeted for growth, such as Europe and Asia.” says Christian Primeau, CEO of Syntax. “Their devotion to excellence combined with their expertise and strong customer focus and value for corporate social responsibility made it an obvious choice for Syntax.”
“We are grateful to have found a strategic partner, who can provide FIT a boost from inorganic growth, which can open up new customer segments. I am pleased with the prospect of joining Syntax; the combined entities will accelerate new and exciting opportunities that can only lead to future success for our customers and employees. Our values and strategies are aligned, we are both driven by innovation, have a strong customer orientation and focus on team spirit,” says Horst Reichardt, Global CEO of FIT.
The acquisition, which is expected to be completed later this quarter, is subject to customary closing conditions, including regulatory approvals and the approval of the antitrust authorities. Until the deal is complete, the companies will continue to operate separately. Terms of the transaction will not be disclosed.
MVP Capital Advisors served as exclusive financial advisor to Novacap on the transaction.
Founded in 1981, Novacap is a leading Canadian private equity firm with $2.3 billion of assets under management. The firm’s unique investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous investee companies. 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 Freudenberg IT
Freudenberg IT (FIT) is a global Cloud provider and IT service provider for upscale medium sized enterprises. At home in the automotive and manufacturing sectors, FIT now provides a broad IT service spectrum that covers almost the entire SAP landscape, including application management services, SAP licenses and extensive consulting services for the implementation of SAP S/4 HANA. FIT was – among other things – involved very early on in utilizing the Industry 4.0 megatrend. A complementary partnership with Microsoft also allows for the targeted support for customers in the digitalization of ever more advanced workplace environments. Learn more about FIT by visiting: www.freudenberg-it.com
MVP Capital Advisors provides merger and acquisition, private debt and equity capital raising, and strategic and valuation advisory services to the technology, media, telecommunications and renewable energy sectors. For more information, please visit www.mvpcapital.com
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