One of the heartening new developments being announced this week is that the world's largest and most experienced private equity investors, Advent International is slated to invest and acquire a majority ownership stake in SYSPRO, a leading global ERP software provider for the manufacturing and distribution industries.

SYSPRO, a company whose developments we have covered for several years, is already well established as a global leader within its key market verticals, offering a purpose-built software suite catering to complex customer needs and critical industries, such as manufacturing.

Advent International is a major player on the investment front, having made around $80 billion of investments since 1984, and $21 billion in SYSPRO's particular vertical, of ERP software for the manufacturing and distribution sectors. 

It is not just a major feather in the cap for SYSPRO - and a major boost for their customer services and delivery -  it is also a massive vote of confidence for South African companies and South African skills.

In an exclusive interview yesterday, the SYSPRO team explained why having an international fund acquire a stake in its business was so significant.

Jaco Maritz

''Having the backing of a large fund positions SYSPRO very well for the future, both to capitalize on our position around the world, in our different markets, but also enables us to expand our growth and our brand globally, '' enthused Jaco Maritz, the Global CEO of SYSPRO.

Maritz elaborated that the transaction - which will formally conclude before the end of the year -  will accelerate SYSPRO’s global growth ambitions by enabling it to make additional investment to support next generation product and technology innovation. This will in turn be passed onto SYSPRO's clients, enabling them to unlock greater growth opportunities.

Mark Wilson, the CEO for SYSPRO EMEA and APAC, explained that there are many positive benefits to come for the company's South African customers. ''They will still trade with SYSPRO as it stands and it will be business as usual, and we will continue providing solutions to our customers as always.’’

Wilson added that the investment will also enable SYSPRO to leverage for bigger business and will translate into technology advantages for its customers.

''That said, we will retain the strong level of customer intimacy and customer engagement that we have grown over the years,'' he stressed.

''We are planning to our partners on the journey with us as well, so this should also hopefully create downstream opportunity for our business partners to add more value to their customers," he continued.

Mark Wilson

Maritz explains that the transaction has been in the works for a while, with SYSPRO attracting the attention of Advent International due to its 40 years staying power, as well as high pedigree of customers. ''I think they looked at what we were doing and the strength of our customer base in the manufacturing sector, and saw potential to bring more value to our customer base and the South African manufacturing sector,'' he explained. 

“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,” explained Douglas Hallstrom, Director at Advent International.

“Advent has deep experience in the enterprise application industry and we are excited to bring the best of Advent to support the company, and to partner with Mike and the SYSPRO team in building a long-term global category leader,” added Christian Braunfisch, Assistant Director at Advent International.

As part of the transaction, Mike Ettling, an experienced software business leader who was previously the President of SAP SuccessFactors and is presently the CEO of Unit4, will join SYSPRO as Chairman of the Board.

''This investment is very exciting for us as a company and also says a great deal about South African businesses that have successfully expanded into the Americas, UK, Australia and other countries around the world.

It's also a strong testament to the technical skills that are present in South Africa, as well as the astuteness of South Africans who have proven themselves most able of building esteemed global businesses and competing on the global stage,'' concluded Maritz.