Author Archive

Canadian Transactions

March 2nd, 2017. Shoplogix acquired by FOG Software Group. Transaction Table here

February 23rd, 2017. Halogen Software (TSE: HGN) acquired by Saba Software Inc. for aC$12.50 per share or C$293 million.

February 23rd, 2017. BlueCat Networks was acquired by US private equity firm Madison Dearborn Partners for almost $400 million. Transaction table here

February 21st, 2017. Halifax-based STI Technologies was acquired by QuintilesIMS (NYSE: Q -). Transaction table here

February 16, 2017. Airbnb announced the acquisition of Montreal-based Luxury Retreats for an amount according to various sources of between US$200 million and C$300 million. Transaction table here

February 14th, 2017. PayPal (Nasdaq: PYPL) has acquired Vancouver – based TIO Networks (TSX-V: TNC)  for a reported amount of CAD$304M. Transaction Table here

February 13th, 2017. Deluxe Corp. (NYSE: DLX)  agreed to pay approximately US$72 million for Waterloo-based RDM Corp. Transaction Table here

February 9th, 2017. Homestars will be acquired by HomeAdvisor, a platform that offers similar services to homeowners in the US. HomeAdvisor is a subsidiary of IAC (NASDAQ: IACI). Transaction Table here

February 8th, 2017. ETAS GmbH, a wholly-owned subsidiary of Robert Bosch GmbH, announced that it is pending approval for the acquisition of TrustPoint, a Waterloo-based M2M communications start-up.

February 7th, 2017. Hootsuite has announced its acquisition for AdEspresso, a San-Francisco based advertisement optimization company. Transaction Table here

January 26th, 2017. Waterloo-based Kik Interactive announced the acquisition of Israeli messenger app Rounds for a reported amount of US$60 – US$80M. Transaction Table here

January 23rd, 2017. Toronto-based Research Institute, Meta, has been acquired by the Chan-Zuckerberg Initiative.

January 13th, 2017. Microsoft Corp (NASDAQ: MSFT) announced its acquisition of Maluuba Inc.

January 11th, 2017. Canada Pension Plan Investment Board announced US$1.5B investment into GlobalLogic Inc.

December 5th, 2016. Perk Inc. (TSX: PER) announced it will be acquired by RhythmOne PLC (LSE: RTHM) for US$42.5m.

November 15th, 2016. General Electrics (NYSE: Vancouver basedGE) announced its Vancouver-basedIndustrial Internet-of-thing (IIot) company Bit Stew Systems Inc for US$153m.

Posted in: Canadian Transactions

Leave a Comment (0) →

Wellington Financial completed a $14 million financing for Waterloo-based Dejero Labs

Let’s file this under “better late than never”.  A  belated congratulation to our good friend, Mark Usher, one of the two “Marks” at Wellington Financial LP on the completion of their latest Canadian funding, a $14 million growth financing for Waterloo-based Dejero Labs.

Founded in 2008, Dejero has become a market leader in the remote acquisition, cloud management, and multiscreen distribution of professional live video over IP.   Dejero’s centrally managed LIVE+ range of products have changed the broadcasting landscape, allowing video journalists to record and transmit live, from the scene of the action, using wireless uplink solutions and its patent-pending Intelligent Connection Management system. The company’s customers include ABC, CBC, CBS, CTV/Bell Media, Fox, NBC, and Rogers Media.

In total, the company has completed three rounds of financing for a total of ~$18.5 million beginning with the  MaRs Investment Accelerator Fund (December 2009), followed by a $4.5 million round with Best Funds in May 2014 and finally, Wellington’s $14 million investment in February 2017.  Dejero management plans to use the Wellington investment to expand to the EMEA and APAC regions in 2017.

Wellington Financial LP is a privately-held specialty finance firm providing term, venture and amortizing loans from $2 million to $40 million to Canadian and US technology companies.

Wellington currently manages a $900 million investment program and its latest fund, Fund V, launched on October 1, 2015 has committed or closed $207.4 million to 16 companies.

Importantly from our perspective, Wellington has closed $51.4 million of Canadian transactions over the past 18 months to five companies:

  •  FinCad, a Vancouver-based technology company providing risk analytics and risk management software for valuation and pricing of derivatives including swaps, options, and futures.
  • CareWorx, an Ottawa-based top 100 Global Managed Service Provider targeted at the senior care market with over 4,000 facilities operating over 60,000 CareWorx touchscreens for their daily electronic health record (EHR) documentation.
  • Acquisio, a Montreal-based software platform that facilitates customer acquisition using ad platforms such as Google AdWords, Facebook Ads, and Bing Ads.
  • Exinda, a Toronto-based provider of network orchestration solutions that helps IT teams from over 4,000 worldwide organizations manage the way users, traffic, devices and applications behave across their networks.
  • Dejero Labs, a Waterloo-based technology company that simplifies the remote acquisition, cloud management, and multiscreen distribution of professional live video over IP.

For more transaction details, please click here

Posted in: PE/VC News

Leave a Comment (0) →

When Should You Sell Your Startup?

In a recent article, Tunguz from Redpoint takes a stab at the age-old question of “when should I sell my start-up?” As most of you have already expected, the answer to that question is unique to different situations. To help figure this out, Tunguz invites the readers to think about a more tangible, but related, question–when is value maximized? Specifically, “when is a company’s value maximized, given a declining growth rate?”

A startup’s value is highly correlated to its ability to grow, the linear relationship between its Enterprise Value and its TTM Growth rate is shown below.

The R^2 between growth and ev/ttm

Given this correlation, Tunguz concludes that “Just because the business grows doesn’t mean it increases its value. It has to grow at a certain rate to be worth more.”

Take a look at the three different scenarios of declining growth rate:

Comparison of scenarios for EV of company when growth rates are falling

In the last scenario, the EV of the hypothetical company actually falls despite a 25% increase in revenue.

So to answer the original question– the best time to sell is before it decreases in enterprise value.  Tungus explains further “Startups are valued for their growth. At some point, if the business can’t grow fast enough, its enterprise value will fall year over year.”
Source: TOMASZ TUNGUZ

Posted in: PE/VC News, Selling Your Business

Leave a Comment (0) →

FOG Software Group Acquires Shoplogix

Date of Announcement 3/2/2017
Headline FOG Software Group acquires Shoplogix
Sector Information Technology, Information Services, Software
Company Acquired Shoplogix
Company Location Mississauga, Ontario
Private/Public Private
Transaction Amount (reported) N/A
Founded 2002
Employees 51-100
Amount Invested $7M 2 Rounds 2 Investors
Key Investors EdgeStone Capital Partners, Relay Ventures
Acquirer FOG Software Group
Acquirer Location Toronto, Ontario
Private/Public Private
Founded 1999
Employees 51-100
Capital Raised to date N/A
Key Investors FOG Software Group is a division of Vela Software and Constellation Software, Inc. (TSX:CSU)
Comment Following the acquisition, Shoplogix is being operated as an independent division of FOG Software.
Press Release Shoplogix
Source crunchbase
For more information: Click Here

Posted in: Supplementary Data

Leave a Comment (0) →

DH Corp acquired by Vista Equity Partners LLC

Date of Announcement 3/13/2017
Headline Vista Equity Partners acquires D+H
Sector Information Technology, FinTech, Payments
Company Acquired D+H
Company Location Toronto, Ontario
Private/Public Public
Transaction Amount (reported) $4.8B
Founded 1875
Employees 1,000-5,000
Amount Invested N/A
Key Investors
Acquirer Vista Equity Partners
Acquirer Location Austin, Texas
Private/Public Private
Founded 2000
Employees 51-200
Capital Raised to date $28B
Key Investors
Comment The deal would merge D+H with Mysis, a U.K.-based software company focused on the global banking industry.
Press Release The Globe and Mail
Source crunchbase
For more information: Click Here

Posted in: Supplementary Data

Leave a Comment (0) →

Deluxe Corp. acquires RDM Corp.

Date of Announcement 2/13/2017
Headline Deluxe Corp acquires RDM Corp.
Sector Software
Company Acquired RDM Corp
Company Location Waterloo, Ontario
Private/Public Public
Transaction Amount (reported) $70M
Founded 1987
Employees 51-100
Amount Invested N/A
Key Investors
Acquirer Deluxe Corp
Acquirer Location Saint Paul, Minnesota
Private/Public Public
Founded 1915
Employees 10,000+
Capital Raised to date N/A
Key Investors
Comment
Press Release Business Wire
Source crunchbase
For more information: Click Here

Posted in: Supplementary Data

Leave a Comment (0) →

STI Technologies acquired by Quintiles IMS

Date of Announcement 2/10/2017
Headline Quintiles IMS acquires STI Technologies
Sector Pharmaceuticals, Health Care, Biotechnology
Company Acquired STI Technologies
Company Location Halifax, Nova Scotia
Private/Public Private
Transaction Amount (reported) N/A
Founded 2001
Employees 51-200
Amount Invested US$17M 1 Round 1 Investor
Key Investors Imperial Capital Group
Acquirer Quintiles IMS
Acquirer Location Durham, North Carolina
Private/Public Public
Founded 1982
Employees 50,000+
Capital Raised to date N/A
Comment The combination of QuintilesIMS and STI Technologies’ capabilities will enable our customers to deliver a better patient experience.
Press Release BetaKit
Source crunchbase
For more information: Click Here

Posted in: Supplementary Data

Leave a Comment (0) →

BlueCat Networks acquired by Madison Dearborn Partners

Date of Announcement 2/23/2017
Headline Madison Dearborn Partners acquires BlueCat Networks Inc.
Sector Cloud Computing, Mobile Devices, Apps, Enterprise Software, Virtualization
Company Acquired BlueCat Networks Inc.
Company Location Toronto, Canada
Private/Public Private
Transaction Amount (reported) N/A
Founded 2001
Employees 251-500
Amount Invested US$27.8M 2 Rounds 3 Investors
Key Investors Bridgescale Partners, TD Capital, Trident Capital
Acquirer Madison Dearborn Partners
Acquirer Location Chicago, Illinois
Private/Public Private
Founded 1992
Employees 41
Capital Raised to date US$23B
Comment MDP’s support will accelerate the expansion of BlueCat’s leading Enterprise DNS solutions
Press Release Newswire
Source crunchbase
For more information: Click Here

Posted in: Supplementary Data

Leave a Comment (0) →

FOG Software Group Acquires Shoplogix

March 2nd, 2017. Shoplogix acquired by FOG Software Group, a division of Vela Software and Toronto-based Constellation Software, Inc. (TSX: CSU).  Founded in 2002, Oakville-based Shoplogix specialized in enterprise manufacturing intelligence (EMI) applications, providing companies with real-time visibility into their machine and production performance. the company completed an undisclosed financing round with Edgestone Capital Partners in May 2005 and a $7 million Series B round with Relay Ventures and Edgestone.  The value of the transaction was not disclosed.
Source: Shoplogix
Transaction table: click here.

Posted in: Archive

Leave a Comment (0) →

DH Corp acquired by Vista Equity Partners LLC

March 13th, 2017. Vista Equity Partners LLC agreed to buy Canadian financial services provider DH Corp (TSX: DH). for $2.73 billion plus the assumption of $2.07 billion in debt for a total value of $4.8 billion. Vista plans to combine DH Corp. with Misys Ltd., which it bought in 2012.  Founded in 1875, DH Corp. (formerly known as Davis+Henderson Corp) attempted to transition away from its tradition cheque print business into financial technology with the $1.2 billion 2013 acquisition of Hartland Financial Services and the US$1.25 billion 2015 acquisition of Fundtech, a provider of global payments to banks.

Source: Globe and Mail

For more information, click here.

Posted in: PE/VC News

Leave a Comment (0) →
Page 1 of 4 1234