Summit Partners-owned Syncron, a cloud services provider to equipment manufacturers acquired Mize, also a service life cycle management software.
Projected combined ARR for both the business this year will cross $60 million, according to Dr Friedrich Neumeyer, CEO of Syncron.
Syncron works on a subscription basis where it helps heavy equipment manufacturer in industries like auto, agriculture, aersospace provide better after-sales service and improve revenue margins.
For example, the Stockholm-based company offers manufacturers an algorithm that can better anticipate auto part demands helping them properly stock service parts around their global networks – eliminating excess inventory, according to its website.
Summit invested $67 million in 2018 in Syncron. Mize its first add-on acquisition. At the time, the company’s post money valuation was at $175 million, according to a TechCrunch report.
The combined company will use the Syncron brand and have more than 700 employees with more than 200 clients. “We have been very selective of potential mergers; Syncron is not a roll-up platform,” said Antony Clavel, managing director at Summit.
The two companies have known each other for some time and share a number of customers. Mize wasn’t on the block for a buyer and the interest was driven by the opportunity set, Clavel said.
“Together we can help create higher margin businesses, and recurring revenue from subscription and outcome-based business models,” Neumeyer said in the press release. As part of the merger, founder and CEO of Mize, Ashok Kartham will join the Syncron as the company’s chief product office.
With the acquisition, Summit aims to offer the first comprehensive portfolio of SaaS solutions specifically for the aftermarket and services businesses.