Software27.09.2024

Major South African software company’s sale to US investor approved

The Competition Commission has approved Advent International-owned Safari UK Holdco Limited’s proposed deal to acquire Syspro, with conditions.

This comes after Advent International announced that it had entered into an agreement to invest in and acquire a majority stake in the South African-based multinational software company.

“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,” the Competition Commission said in a statement.

However, it noted various conditions. Safari must not retrench any Syspro staff as a result of the merger within two years of the implementation date.

“In addition, the merger parties shall, within the same timeframe, establish an employee share ownership programme for the benefit of participating workers,” the commission added.

Syspro supplies enterprise resource planning (ERP) software to customers in various sectors, particularly manufacturing and distribution services.

The ERP software helps automate and integrate business processes, including scheduling operations and recording inventory and financial data.

In August 2024, Advent International announced that it had signed a deal to invest and acquire a majority stake in Syspro, adding to its investments in ERP, financial, and manufacturing software.

Syspro said the deal will accelerate its 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”.

Advent International director Douglas Hallstrom said Syspro had been a target for the company for some time.

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

Assistant director Christian Braunfisch described Syspro as well-established with meaningful growth potential.

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 led Syspro for 46 years, will retire at the end of the month. Syspro CEO Jaco Maritz will continue in his position.

“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.

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