Last month data management specialist Axway publicised its deal to acquire enterprise file sync and share (EFSS) solution specialist Syncplicity. Both sides of the deal sat down with bobsguide to explain why the deal was made now, and how the acquisition makes both companies stronger.
Scott Hausman Executive Vice President, Corporate Development, Axway
What is Axway’s major motivation behind the Syncplicity acquisition?
The major motivation for acquiring Syncplicity now is based on our vision of the developing market and need for our customers to deliver and/or participate in Customer Experience Networks. The file sharing and collaboration capabilities are a required interaction method within a comprehensive customer experience network and therefore must be available through our AMPLIFY™ platform in order for us to fully deliver on our vision for our customers. The combination of user experience and the core file-based interaction mechanism bridges the gap between the integration foundation and ecosystem engagement layers, allowing users to more easily access and collaborate on the data (files and folders).
Syncplicity has the best solutions for the enterprise and specifically for Axway’s major customer segments. Syncplicity’s focus on flexibility of deployment model – hybrid (data/files can reside behind the customer firewall in a private cloud or in the public cloud), security (encryption model, and privacy regions to ensure data sovereignty is maintained) and scalability are the primary concerns for large financial services, healthcare, and government customers and offer true differentiation from competition within all industry customer segments.
What does Syncplicity bring to the Axway product suite that is currently lacking?
Axway’s historic leadership has been in system-centric file exchange – Managed File Transfer (MFT). Although Axway successfully enables certain “human-centric” file exchange patterns, the Syncplicity solutions extend and complete our capabilities related to human-centric file sharing and collaboration needs. In addition, they provide deployment flexibility from a fully multi-tenant/cloud-based offering to the same solution being deployed in a hybrid (cloud and on premise) fashion.
How long did it take to complete the deal?
Deal process was 4-5 months.
Can we expect to see more M&A activity from Axway in the near future?
Having just completed this transaction, there is not another acquisition imminent. However, Axway is always in the market, strategically looking for those companies and solutions that will allow us to deliver on our vision and to provide better and more complete solutions for our customers, which ultimately results in driving value for our shareholders.
Do you think increased M&A activity between fintech companies is going to be a trend in 2017?
Although there is still tremendous room for continued innovation and new companies in the fintech space (including leveraging blockchain technology), fintech solutions/companies have reached a level of maturity that will lead to both combinations in the industry as well as more traditional companies acquiring fintech suppliers. So, yes I see increasing M&A activity in the Fintech space for 2017.
Jonathan Huberman CEO, Syncplicity
What does Syncplicity get out of the Axway merger?
A much greater global market reach, with a significant sales and marketing network, and a larger customer base on which Axway and Syncplicity can propose a one stop shop offering for all enterprise file transfer and sharing.
The acquisition also allows for a worldwide global support organisation that will serve Syncplicity’s customers. In addition, Syncplicity is now part of a financially stable global company – Axway – that has a track record in profitable growth.
Through the acquisition both companies will see the expansion of the offering with capabilities which are key to the extended EFSS market. For example, enhanced APIs and API lifecycle management (build, govern, engage consume, monitor), with the ability to create new APIs for the use in the context of enterprise business applications (not only web or mobile apps); Analytics (embedded, operational intelligence, big data, industry); and network of 800 000 app developers, who can now create secure file share enabled applications.
Will there be a full integration of the two companies or will Syncplicity continue to operate independently to any degree?
The two companies are being fully integrated from Day one, but the Syncplicity sales model (leveraging the channel) will be leveraged “as is”. The highly acclaimed Syncplicity Customer Success Program and best practices will be leveraged by Axway globally.
How does the acquisition alter the way that Syncplicity positions itself to the market?
The acquisition does not alter Syncplicity nor Syncplicity’s position in the marketplace, but rather enhances it. The acquisition allows not only the leveraging of Syncplicity “as is” in the EFSS market segment, but it also allows Axway to take the next step towards “secure digital ecosystem file sync and share” that enables customer experience networks.
What are the company’s major goals for 2017?
- Keep up and increase the growth of the Syncplicity business.
- Augmentation of the Syncplicity offering with the Axway AMPLIFY™ platform features
- Augmentation of the Axway AMPLIFY™ platform with the Syncplicity offering’s use cases
- Show evidence of the need for a data integration and engagement platform to build customer experience networks