NTT DATA Services buys Vancouver-based Sierra Systems

05 November 2018 Consulting.ca

Leading global IT consultancy NTT DATA Services has acquired Vancouver-based IT consulting firm Sierra Systems Group, the Canadian subsidiary of Sierra-Cedar Group. The transaction is slated to close by the end of this year.

Founded in 1966, Sierra Systems provides a full suite of advisory, systems development and integration, and application managed services, with strong support for Microsoft and Oracle software solutions. The IT services and management consulting firm employs about 700 professionals across Canada, with headquarters in Vancouver and nine further offices across BC, Alberta, Saskatchewan, Manitoba, Ontario, and Nova Scotia.

The firm is a subsidiary of Alpharetta, Georgia-based consulting and managed services firm Sierra-Cedar Group, which employs 900 professionals across the US, as well as hundreds of offshore employees though an Indian subsidiary.NTT DATA Services buys Vancouver-based Sierra SystemsThe Canadian firm Sierra Systems has now been purchased by Plano, Texas-based NTT DATA Services, a division of Tokyo-based NTT DATA, a top-10 global business and IT services firm. NTT DATA provides business consulting, IT consulting & integration, and organizational change management services to clients from offices stretching across more than 50 countries. The company employs over 118,000 professionals, and has annual revenues in excess of US$14.6 billion.

The global firm was ranked the 8th largest worldwide IT services provider in 2017, based on market share, in a recent Gartner report. Within Canada, NTT DATA has over 900 employees, with offices in Halifax, Montreal, and Toronto.

The deal significantly expands NTT DATA’s Canadian footprint, adding 700 employees, while also broadening its geographical penetration across the Prairies and the West Coast. NTT DATA gains the capabilities of a firm with highly complementary strengths and culture, as well as Sierra’s long-term client relationships across industries – including healthcare and the public sector.

“Sierra Systems’ reputation as a trusted advisor in Canada is evidenced by the strength of their client relationships, many of which have spanned decades,” said Bob Pryor, CEO, NTT DATA Services. “With the addition of Sierra Systems’ talented team, we’ll expand our ability to deliver innovation and business outcomes to clients in Canada and extend our North American delivery capabilities. Growth prospects are very strong in Canada, so this is an attractive market as we continue to grow globally.”

NTT DATA will also strengthen its talent in core areas like Microsoft Dynamics, Oracle, and ServiceNow. Meanwhile, NTT DATA’s global capabilities and network will bring a broader portfolio of services in infrastructure, applications, and digital transformation to Sierra Systems’ existing clients.

“Joining the NTT DATA family is truly a perfect match for Sierra Systems that expands opportunities for both our clients and employees,” commented Pat Kaiser, Chief Operating Officer, Sierra Systems. “The alignment of our services and industries with an appreciation of our client relationships and culture underscores our commitment to meeting the unique needs of the Canadian marketplace.”

With the sale of Sierra Systems, US-based Sierra-Cedar will continue its primary focus on the US market. Sierra-Cedar was advised on the transaction by TM Capital, a New York-based investment bank.

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Syntax closes FIT deal, welcomes Quebec Minister of Economy and Innovation

19 March 2019 Consulting.ca

IT consulting and services firm Syntax Systems recently welcomed Pierre Fitzgibbon, Quebec Minister of Economy and Innovation, to its Montreal headquarters. At a joint press conference, the firm announced the completion of its acquisition of Germany-based SAP cloud specialist Freudenberg IT (FIT).

In January, Syntax – a portfolio company of Montreal-based private equity firm Novacap – announced a double acquisition of cloud ERP consulting firms EmeraldCube Solutions and FIT. EmeraldCube’s specialization lies in Oracle’s JD Edwards software, as well as Amazon Web Services, while FIT is a leading SAP partner. Novacap provided equity financing for the deals.

The acquisition of FIT augmented Syntax’s core offering in Oracle strategy and implementation with SAP software expertise, while extending the firm’s footprint into Europe, Latin America, and Asia-Pacific, as well as adding 850 employees. The EmeraldCube deal boosted the firm’s capabilities and presence in the US, adding to Syntax’s offices in New York City and Somerset, New Jersey.

Syntax closes FIT deal, welcomes Quebec Minister of Economy and Innovation

At a joint press conference attended by Quebec’s Minister of Economy and Innovation, Syntax announced the strategic acquisition is now official, after a six-week period of customary approvals.

"I am very proud of what our company has become. Thanks to these deals, Syntax can deploy its expertise in many new markets, such as Asia, Europe and Latin America, as well as reinforce its North American presence. Syntax will keep its head office in Quebec and wants to inspire other companies to conquer international markets. We look to the future with great confidence, because FIT and EmeraldCube Solutions share our values of customer success and excellence. We are now a major player in the industry," Christian Primeau, CEO of Syntax, said.

The FIT acquisition gives Syntax offices  in Germany, the US, China, Hungary, Slovakia, and Mexico. It also adds a strong client base in the automotive and manufacturing sectors, as well as a deep partner relationship with German ERP giant SAP.

“Quebec and its metropolis are locations that favour the development of information and communications technology as well as companies that are active in this cutting-edge sector. Syntax is demonstrating this by acquiring two international companies and continuing its growth," Minister Pierre Fitzgibbon said at the press conference. 

“This is a great example of a Quebec company that is distinguishing itself internationally and promoting our expertise throughout the world. I am delighted by this announcement, for Syntax and for Quebec as a whole," he added.