Syntax Systems (Syntax), a leading provider of cloud managed ERP services, announced its agreement to acquire German IT service provider Freudenberg IT.
Merging Service Providers Syntax is a portfolio company of Novacap TMT IV and Novacap TMT V, a Montreal based private equity firm, which provided the equity financing for the acquisition. FIT manages SAP applications in the Cloud for Enterprise customers in Europe, America and Asia. This strategic acquisition enables both companies to combine their specific strengths and be a service provider for new markets with a growing portfolio.
This acquisition expands Syntax’s service offerings in the SAP market and complements existing business operations, making Syntax one of the most compelling multi ERP, multi cloud providers in the industry. Syntax can now provide end to end solutions for customers, offering them flexibility with both Oracle and SAP ecosystem expertise and serve them worldwide. Additionally, Syntax will leverage their current Private, Hybrid and Public cloud capabilities to accelerate FIT’s growth in SAP.
FIT is a global leader in managed IT services that specializes in helping companies optimize mission-critical technology that runs their businesses, using SAP applications. In fact, FIT has had a long-lasting relationship with SAP’s founding fathers who started collaborating with the Freudenberg Group, a parent company of FIT, almost 50 years ago.
A Great FIT
“The acquisition of FIT represents an ideal investment for Novacap leveraging Syntax’s development as a global cloud service provider” commented Ted Mocarski, a Senior Partner at Novacap and Chairman of the Syntax Board of Directors. ” FIT’s strong position in the market represents an exciting growth opportunity for Syntax. We look forward to supporting and working with Syntax through this exciting part of its history.”
“We are excited by the opportunity of joining forces with FIT and extend our reach to the SAP ecosystem. This acquisition will enable us to increase our presence in geographies we had previously targeted for growth, such as Europe and Asia.” says Christian Primeau, CEO of Syntax. “Their devotion to excellence combined with their expertise and strong customer focus and value for corporate social responsibility made it an obvious choice for Syntax.”
The acquisition, which is expected to be completed later this quarter, is subject to customary closing conditions, including regulatory approvals and the approval of the antitrust authorities. Until the deal is complete, the companies will continue to operate separately. Terms of the transaction will not be disclosed. “We are grateful to have found a strategic partner, who can provide FIT a boost from inorganic growth, which can open up new customer segments. I am pleased with the prospect of joining Syntax; the combined entities will accelerate new and exciting opportunities that can only lead to future success for our customers and employees. Our values and strategies are aligned, we are both driven by innovation, have a strong customer orientation and focus on team spirit,” says Horst Reichardt, Global CEO of FIT.