Syntax buys Linke: as discussed in the sector analysis by our Baker Tilly analysts specialising in the technology sector, Cloud Computing is a sector that is constantly growing. It is a sector that encompasses all types of companies, in terms of size, that are looking to renew and optimise themselves by managing, through companies dedicated to cloud solutions, to forget about problems concerning the capacity of their computers, for example.
Since Syntax acquired Linke last April, we will discuss this operation in this article. Syntax, a Canadian company with a long history in the Cloud Computing and Software sector, acquires Linke, a Spanish start-up expert in SAP and AWS solutions. The transaction took place on 15 April, being the latest acquisition in the Cloud Computing sector in Spain. The amount of the transaction is not known at the moment.
The Canadian company which since its inception has been dedicated to providing comprehensive technology solutions to all types of companies, small or large, being a benchmark in multi-ERP deployments, such as SAP and Oracle, in any environment (public, private, hybrid or multicloud), has purchased Linke on 15 April. This Spanish company founded in 2010, an expert in SAP and AWS solutions, became a SAP Gold Partner in 2020, a category of the Partner Edge programme, a certification that designates Linke as a company with extensive experience and a high level of performance. This title has made Linke a benchmark in the international SAP market.
Looking at the year 2020 from LinkeWe can conclude that it is a growing company with a great projection in the market since, in addition to receiving the aforementioned Gold Partner title, it increased its revenues by 19.5% with respect to 2019. At the same time, it should be noted that the revenues obtained abroad last year represent 25%. The objectives set by the company were amply surpassed, focusing its services on accelerating digitalisation processes through the cloud, as Chabier Sanvicente, CEO and co-founder of the company, remarked.
On the other hand, thanks to Syntax's acquisition of Linke, the Canadian company is able to expand its global presence, with Linke having a presence in the French market, in the Nordic markets and, of course, in the Spanish market. For its part, Linke gains access to the so-called DACH region, a region that includes Germany, Austria and Switzerland, by offering its solutions to Syntax's customers. These innovative solutions were developed by Linke and range from the AWS Connector to the SAP Automation Platform.
According to Linke's CEO and co-founder, this acquisition will enable Linke to grow faster, accelerate its international expansion, enhance solution development and capabilities, and expand its business value and customer proposition.
Looking at Syntax's activities over the past few years, we note the completion of 4 acquisitions. Two of them are US companies, EmeraldCube Solutions (acquired in 2019), a company that offers innovative technology to customers of JD Edwards, another software company owned by Oracle. The other US company owned by Syntax is Core Services Corporartion, which was acquired in 2017 and is dedicated to the implementation of Oracle applications and their development and support for customers. Finally, the remaining company is a German company, Freudenberg IT.
This company is also an expert in SAP consulting, specifically in the implementation in the automotive and manufacturing sectors, and exclusively dedicated to medium-sized high-end companies. This latest acquisition in 2019, together with that of Linke, clearly marks Syntex's intention to have a strong presence in Europe.