Novacap needs to make Syntax “one other Nuvei”

Pascal Tremblay has accompanied a number of high-tech corporations in Quebec throughout his profession as an investor, and his ambition for Montreal-based cloud companies firm Syntax is past query.

“What we dream of doing with Syntax is one other Nuvei,” says the president and managing companion of Novacap, a non-public funding agency in Brossard.

Nuvei is that this Montreal digital cost options firm by which Novacap has been a shareholder since 2017 and which made a notable entry on the Toronto Inventory Alternate final yr, elevating $ 700 million.

It was the biggest preliminary public providing within the expertise sector in Quebec by way of capital raised and market capitalization, but in addition the biggest ever made by an organization on this sector in Toronto.

Nuvei’s stake has additionally tripled since its IPO.

Continuation Fund

Novacap will announce this Wednesday that it’s making a continuation fund, that’s, an funding car that enables shopping for Syntax and reinvesting within the firm along with giant traders resembling Goldman Sachs, particularly.

“Our fund was coming to an finish and the restrict of capital that may very well be invested in a single firm,” says Pascal Tremblay.

Relatively than creating a brand new fund that may embrace numerous investments in several corporations, Novacap is establishing a car completely for Syntax that will probably be like a restricted partnership by which Novacap would be the basic companion and institutional traders would be the restricted companions.

This initiative makes it attainable to “proceed” investing in Syntax, therefore the time period “continuation fund”, a kind of car that’s gaining reputation, Pascal Tremblay emphasizes.

Novacap initially invested in Syntax in 2016 by one in all its funds with a median helpful lifetime of round 5 years, throughout which period the agency invests in numerous corporations alongside outdoors traders.

In doing so, Novacap raised $ 1.1 billion to purchase Syntax and proceed to develop it. “We purchased the corporate for about $ 800 million and added an extra $ 300 million in capital to assist its future growth,” says Pascal Tremblay.

Specifically, the cash will assist Syntax make new acquisitions to additional improve annual gross sales, which right now stand at almost C $ 500 million.

“We’re giving ourselves three years to take a position the 300 million {dollars},” says Pascal Tremblay.

What’s the syntax?

Based fifty years in the past, Syntax makes a speciality of cloud internet hosting administration companies to assist the implementation of administration software program packages resembling SAP, Oracle, and JD Edwards.

Along with internet hosting, the Montreal-based firm affords software administration improve companies and ongoing assist.

Syntax has made a number of acquisitions lately. An important, estimated at a number of hundred million, is undoubtedly 2018 that concerned Freudenberg IT, a German supplier of cloud companies.

Syntax’s workforce is roughly 1,750 workers worldwide. The corporate has 16 places of work positioned in Canada, the US, Mexico, Germany, France, Spain, Portugal, Slovakia, India and China.

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Pascal Tremblay has accompanied a number of high-tech corporations in Quebec throughout his profession as an investor, and his ambition…

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