VC activity in Canada is booming but M&A activity continues to lag. Not sure what everyone is waiting for. Higher oil prices? Higher interest rates? A slow down in the housing market? Sanity in the US presidential elections?
In this newsletter, Mike shares his thoughts regarding some of the recent Canadian technology exits, we look at a newly-released report on the outlook for M&A in Canada in the coming years, and we provide some details on a few of the transactions that took place in March.
In this newsletter, we comment on a few articles we came across recently that we thought might be of interest to you. As well, there was some noteworthy M&A activity involving Canadian tech companies over the past few weeks so we have provided summaries on a few transactions that stood out to us.
It’s easy to misinterpret reported M&A numbers given that reported numbers for the Canadian M&A market are highly influenced by a small number of mega-deals such as the CPPIB announced the acquisition of Homeplus Co. for $8.6 billion or the Brookfield Infrastructure Partners LP acquisition of Asciano Limited for $12.4 billion.
This month we take a look at Staples’ acquisition of PNI Digital Media. Any time a company receives an offer from an acquirer who is willing to pay a premium to the current market price – and that offer is accepted by shareholders – it’s time to celebrate. However, we often forget the hard work and the trials and tribulations that companies endure prior to getting to the liquidity event.