Major South African software company sold to US investor

Advent International has announced that it has entered into an agreement with Syspro to invest in and acquire a majority stake in the South African-based multinational software company.

“This transaction will accelerate Syspro’s global growth ambitions, through additional investment to support next-generation product and technology innovation to unlock growth opportunities in key markets, including the USA and UK,” says Syspro.

Advent International is an experienced investor in the software space. It has investments in enterprise resource planning (ERP), financial, and manufacturing software.

It recently invested in Aareon, a European company providing software-as-a-service for the property industry, and Unit 24, a global cloud ERP software vendor.

It has also invested in companies like Medius, which specialises in AP automation, and B2B payments, which provides sourcing and procurement software.

“In addition to a 34-year track record in technology investing, Advent brings a depth of experience in the manufacturing and industrial space, having invested $21 billion within the sector globally in the last 33 years,” says Syspro.

The move will see Unit4 CEO Mike Ettling join Syspro as board chair.

Advent International director Douglas Hallstrom says Syspro has been in the company’s sights for some time.

“We are delighted to support the company into a new phase of ambitious innovation and growth acceleration,” said Hallstrom.

Christian Braunfisch, assistant director at Advent International, says Syspro is already a well-established business with meaningful potential for further growth.

Syspro co-founder Phil Duff added that he is confident that Advent International can foster continued growth and innovation at the company.

Duff, who has been at the helm of Syspro for 46 years, will retire at the end of September 2024.

Syspro CEO Jaco Maritz will continue in his position. He said the partnership with Advent International validates Syspro’s strategic realignment while providing resources and expertise for growth.

“We are excited about the opportunities this collaboration will bring and remain committed to delivering exceptional manufacturing and distribution software solutions to our customers worldwide,” said Maritz.

The transaction is expected to close late in 2024’s third quarter, pending regulatory approvals and closing conditions.