Novacap said it has closed the first major private equity continuation vehicle deal in Canada. Novacap’s TMT VI Fund and the continuation pool, whose lead investor is Goldman Sachs Asset Management’s Vintage Funds, acquired a controlling interest in Syntax Systems, a Montreal-based provider of application management in the cloud. Syntax was acquired from Novacap TMT IV, Novacap TMT V and others. No financial terms were disclosed. Credit Suisse advised on the deal.
Novacap Completes First Major Continuation Vehicle Transaction in Canada
MONTREAL, QC – October 13th, 2021 — Novacap, a leading North American private equity firm, today announced that it has successfully closed the first major private equity continuation vehicle in Canada. Novacap’s TMT VI Fund and the continuation vehicle, whose lead investor is the Vintage Funds within Goldman Sachs Asset Management, acquired a controlling interest in Montreal-based Syntax Systems Group Inc. (Syntax) from Novacap TMT IV and Novacap TMT V, along with other shareholders. Credit Suisse assisted in the private offering of the continuation vehicle.
“Novacap is proud to be the first Canadian private equity firm to bring a significant continuation vehicle to market in our country,” said Pascal Tremblay, President and CEO, Managing Partner at Novacap. “This is extremely meaningful to an organization like ours. With nearly four decades of experience supporting innovative businesses, today’s announcement stands as a testament to Novacap’s industry leadership and demonstrates our commitment to transforming companies into world-class businesses.”
Syntax is a leading provider of mission critical application management in the cloud. Regarded as the multi-cloud and multi-ERP provider of choice for organizations across the world, over 800 customers entrust Syntax with their IT services and ERP needs. With over 1,750 employees globally, the company has 16 offices located in Canada, USA, Mexico, Germany, France, Spain, Portugal, Slovakia, India and China.
Following Novacap’s investment in Syntax in 2016, the company increased its revenue almost fifteen-fold through organic growth and five strategic acquisitions. Today, Syntax is one of the world’s largest multi-cloud and multi-ERP managed service providers for mission-critical applications.
“Our partnership with Novacap has provided the insight and support needed to help Syntax expand its services and increase its global footprint,” said Christian Primeau, CEO at Syntax. “This new investment will provide the capital needed to further cement Syntax’s position as a world-leading technology solutions provider and enable us to continue assisting our customers on their journey to the cloud.”
“We see as much opportunity in Syntax today as we did five years ago, and Novacap is eager to continue being a key contributor to its success,” said Ted Mocarski, senior partner at Novacap and chairman of the Syntax board of directors. “Syntax represents tremendous potential. There is a compelling opportunity for significant value creation from additional capital resources to support organic growth, along with the continued execution of its significant M&A pipeline.”
Credit Suisse Securities (USA) LLC acted as exclusive advisor and placement agent for the continuation vehicle and Davies, Ward, Phillips & Vineberg LLP acted as legal counsel.
Syntax provides comprehensive technology solutions to businesses of all sizes with 800 customers trusting Syntax with their IT services and ERP needs. Syntax is a leading Managed Cloud Provider for Mission Critical Enterprise Applications. Syntax has undisputed strength to implement and manage ERP deployments (SAP, Oracle) in a secure, resilient, private, public or hybrid cloud. With strong technical and functional consulting services, and world-class monitoring and automation, Syntax serves corporations globally across a diverse range of industries and markets. Learn more about Syntax at www.syntax.com.
Founded in 1981, Novacap is a leading North American private equity firm with over C$8B of AUM that has invested in more than 100 platform companies and completed more than 150 add-on acquisitions. Applying its sector-focused approach since 2007 in TMT, Industries and now Financial Services, Novacap’s deep domain expertise can accelerate company growth and create long-term value. With experienced, dedicated investment and operations teams as well as substantial capital, Novacap has the resources and knowledge that help build world-class businesses. Novacap has offices in Brossard, Québec and Toronto, Ontario. For more information, please visit www.novacap.ca.