Advent International to acquire majority stake in SYSPRO

Advent International has announced a definitive agreement to acquire a majority ownership stake in SYSPRO, a global provider of manufacturing and distribution software. This investment aims to enhance SYSPRO's innovation and growth, particularly in key markets including the United States and the United Kingdom.

Founded in 1978, SYSPRO currently employs around 400 people worldwide and serves a client base spread across six continents. The company has established a strong presence in its market verticals, offering a software suite designed to cater to complex customer needs. The investment from Advent is expected to support next-generation product and technology innovations, thereby accelerating SYSPRO's global growth ambitions.

Regarding the strategic alignment, Jaco Maritz, CEO of SYSPRO since 2022, expressed optimism about the partnership. "This collaboration not only validates our strategic realignment but also provides us with the resources and expertise to further strengthen our position in the global market," Maritz said. He also affirmed the company's ongoing commitment to delivering high-quality software solutions to their customers.

Douglas Hallstrom, Director at Advent International, stated, "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, echoed this sentiment, highlighting the unique potential for further growth within SYSPRO. "We are excited to bring Advent's expertise in enterprise application software to support Jaco and the SYSPRO team in building a long-term global category leader," Braunfisch noted.

With 34 years of experience in software investment and a notable track record in the manufacturing and industrial sectors, Advent brings significant expertise to the partnership. Past investments in the software sector include companies like Aareon, Unit4, Medius, and Prometheus Group.

As part of the transaction, industry veteran Mike Ettling will join SYSPRO as the Chairman of the Board. Ettling currently serves as the CEO of Unit4 and was previously the President of SAP SuccessFactors. His leadership is expected to be instrumental in guiding SYSPRO through this transitional period.

The announcement also marks a significant shift in leadership at SYSPRO. Phil Duff, the company's founder and chairman, will retire at the end of September 2024. Reflecting on his tenure, Duff said, "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."

Duff's retirement closes a chapter of nearly half a century of leadership under his stewardship, during which he led SYSPRO to become a global player in the manufacturing and distribution software industry. His legacy is characterised by the company's significant growth and its pivotal role in helping businesses manage and run their operations more efficiently.

The transaction is expected to be finalised by late Q3, pending customary regulatory approvals and closing conditions. Torch Partners acted as the exclusive financial adviser to SYSPRO in the context of this transaction.