Syncronex is an enterprise software developer providing technology solutions to the publishing industry. As the leader in mobile worker technology, it provides software and hardware solutions that allow for automation of critical customer processes, real-time information, and cost savings across the newspaper, single-copy, and media distribution markets.
Newspaper circulations and subscriptions reached their peak in 1973 and have been falling since the proliferation of television in the United States. Magazines subscriptions and single-copy sales continued to grow but they too peaked in 2001 and have been trending down since that time. Since the proliferation television, the internet and now mobile technologies have severely disrupted the print and media landscape of this country. The recession that began in 2008, coupled with the spread of digital and online media, has threatened the very business model of the print industry as ad revenue quickly dries up.
Newspapers, magazines, single-copy, and media distributors need to find innovative ways to reduce costs to make up for lost ad revenue while simultaneously updating the antiquated systems they use. Syncronex’s unique strategies allow for real-time solutions at the point of sale, replacing outdated manual entry systems. Their products are flexible and quick, utilizing the web and cloud computing to reduce resources, steps and errors along the way. All this equates to positive ROI for their clients, helping them reduce costs while increasing efficiency and profitability.
In 2007 the company was looking for financing to make a play to acquire its largest competitor, in a move that would create the largest supplier of software and hardware solutions to the industry. Syncronex also needed the valuable guidance and insight Aequitas could offer.
In 2007 Aequitas Capital Management was introduced to Syncronex through its extensive partner network in the Northwest. Aequitas provided the capital, allowing Syncronex to become the largest provider of mobile technology to newspapers and magazines. As the economy worsened in 2009 however, Syncronex was unable to make payments to Aequitas on their financing. Realizing the potential of the business model, Aequitas chose to work closely with management and strategically recapitalize the firm, stabilize the business. Aequitas then provided financing, a fresh management team, and new insights, in a move to grow the business. Through Aequitas’ fiscal discipline and operational involvement, they were able to create value in Syncronex, within a shrinking industry and despite a slowing economy.