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Canadian Market Recap: Week Ended January 26

  • Posted By: Parsa Pouyan, Hamzah Rizvi, Steven McMaster, Miranda Li, and Paris Aden

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Market Update

Twenty-Two Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 25% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.85 cents, ending the week at 81 cents relative to the U.S. dollar. The TSX underperformed the S&P 500 by 1.8% in U.S. dollar terms. WTI Crude oil rose by 4.5%, ending the week at $66.14 per barrel.                                                 

According to The Lead Left, strong demand for institutional loans has continued into the New Year. Year to date, there has been US$30 billion in institutional loan issuance. While lower than the year-ago level of US$43 billion, this year’s number includes more new money issuance. 

Canadian M&A Transactions [i]

Materials (Announced)

Boardwalktech to Acquire Wood Composite Technologies

Boardwalktech Inc., a Montage Capital, Plug and Play Tech Center, Morado Venture Partners, Columbus Nova Technology Partners, Signatures Capital, and SQN Venture Partners backed U.S. company that provides Excel-based, collaborative planning solutions for manufacturing, telecommunications, financial, retail, and government industries globally, has agreed to acquire Wood Composite Technologies Inc., a Deesons Investments Ltd. backed Canadian company that manufactures wood and plastic composites. No transaction terms were released.

Materials (Closed)

            SOCOMORE has Acquired Sea to Sky Innovations

SOCOMORE, a Groupe Siparex, Alliance Entreprendre, ACE Management and CM-CIC Investissement backed company that creates, manufactures, and commercializes chemicals, has acquired Sea to Sky Innovations Ltd., a Canadian company that manufactures and distributes water-based paint strippers for aviation and infrastructure industries. No transaction terms were released.

Industrials (Closed)

MGX Minerals has Acquired PurLucid Treatment Solutions

MGX Minerals Inc. (DB:1MG), a Canadian company that engages in acquisition, exploration, and development of mineral resource properties, has acquired PurLucid Treatment Solutions Inc., a Canadian company that removes heavy metals and hydrocarbons from oil industry waste streams. Total transaction value is estimated to be $1.68 million.

Cooper Equipment Rentals has Acquired Modern Industrial Rentals

Cooper Equipment Rentals Ltd., a Canadian provider of construction and industrial equipment rental services has acquired Modern Industrial Rentals Ltd., a Canadian company that rents equipment for industrial and residential customers. No transaction terms were released.

Consumer Discretionary (Announced)

Cara Operations to Acquire Keg Restaurants

Cara Operations Limited (TSX:CARA), a Canadian company that operates and franchises full-service restaurants, has agreed to acquire Keg Restaurants Ltd., a Canadian company that operates and franchises Keg steakhouse restaurants and bars in North America. Total transaction value is estimated to be $321 million, reflecting an 18.9x EBITDA multiple and a 0.97x revenue multiple.

Consumer Staples (Closed)

Kemin Industries has Acquired Agri-Marketing

Kemin Industries Inc., a U.S. manufacturer of ingredients for animal health and human nutrition products, has acquired Agri-Marketing Corp., a Canadian company that distributes and markets animal and pet food ingredients. No transaction terms were released.

Healthcare (Announced)

Tetra Bio-Pharma to Acquire PhytoPain Pharma

Tetra Bio-Pharma Inc. (TSXV:TBP), a Canadian developer of biopharmaceuticals and natural health products containing cannabis and other medicinal plant-based elements, has agreed to acquire PhytoPain Pharma Inc., a Canadian company that manufactures cannabinoid-based drugs. Total transaction value is estimated to be $13 million.

Healthcare (Closed)

Inspirata has Acquired Artificial Intelligence in Medicine

Inspirata Inc., a U.S. company that provides software that automates the entire pathology workflow for patients, pathologists, leadership clients, and IT managers, has acquired Artificial Intelligence in Medicine Inc., a Canadian developer of tools that leverage Artificial Intelligence and Natural Language Processing to extract cancer-related information and data from clinical documents. No transaction terms were released.

Sunshine Biopharma has Acquired Atlas Pharma

Sunshine Biopharma Inc. (OTCPK:SBFM), a Canadian pharmaceutical company, which focuses on researching, developing, and commercializing drugs for the treatment of various forms of cancer, has acquired Atlas Pharma Inc., a Canadian company that provides analytical analysis and laboratory services of pharmaceuticals, cosmetics, and natural products. Total transaction value is estimated to be $851 thousand, reflecting a 1.7x revenue multiple.

Financials (Announced)

Acrisure to Acquire Beach & Associates

Acrisure, an ABRY Partners, Genstar Capital, HarbourVest Partners, Veronis Suhler Stevenson and Ares Capital Management backed U.S. company that provides insurance brokerage services, has agreed to acquire Beach & Associates Limited, a Aquiline Capital Partners backed Canadian company that provides reinsurance brokerage services. No transaction terms were released.

Financials (Closed)

Duliban Insurance Brokers has Acquired Fisher Stevenson Boehm Insurance

Duliban Insurance Brokers Ltd., a Canadian provider of insurance brokerage services, has acquired Fisher Stevenson Boehm Insurance Inc., a Canadian company that offers auto, home, business, farm and travel insurance brokerage services. No transaction terms were released.

Information Technology (Announced)

            Appature Mobile Applications to Acquire RewardDrop Software

Appature Mobile Applications Inc., a Canadian software developer, has agreed to acquire RewardDrop Software Inc., a Canadian company that develops blockchain and cryptocurrency software. No transaction terms were released.

The Silanna Group Pty to Acquire Appulse Power

The Silanna Group Pty Ltd., an Australian company that manufactures integrated circuits, has agreed to acquire Appulse Power Inc., a Canadian designer, and manufacturer of semiconductor application-specific integrated circuits. No transaction terms were released.

Universal mCloud to Acquire NGRAIN

Universal mCloud Corp. (TSXV:MCLD), a U.S. company that operates as an IoT connected asset care cloud solution company, has agreed to acquire NGRAIN, a Hawthorn Equity Partners Inc., Tandem and B.C. Renaissance Capital Fund backed Canadian designer and developer of 3D technology solutions that support industrial activities. Total transaction value is estimated to be $2.7 million, reflecting a 6.5x EBITDA multiple and a 1.79x revenue multiple.

Information Technology (Closed)

Amphenol has Acquired CTI Holdings

Amphenol Corporation (NYSE:APH), a U.S. company that together with its subsidiaries, engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors worldwide, has acquired CTI Holdings Inc., a Canadian designer, and manufacturer of interconnect assemblies for IT datacom and industrial applications. No transaction terms were released.

StatSocial has Acquired Macromeasures

StatSocial, Inc., an eCoast Angel Network, TJNS Capital and Mark Cuban Companies backed U.S. company that delivers Twitter analytics that helps marketers understand their social consumers, has acquired Macromeasures Inc., a Canadian provider of customer intelligence solutions for brands, data vendors, social tools, and agencies. No transaction terms were released.

Impact XM has Acquired Endo Networks

Impact XM, a U.S. marketing agency, has acquired Endo Networks Inc., a Canadian developer of sales force automation software systems. No transaction terms were released.

JDM Technology Group has Acquired Rendra

JDM Technology Group Inc., a Canadian provider of business software systems for the architecture, engineering, and construction industries, has acquired Rendra AS, a Norwegian company that develops a cloud 3D building modeling software for the construction industry. No transaction terms were released.

Liquid Media Group has Acquired Majesco Entertainment Company

Liquid Media Group Ltd., a Canadian film, TV, gaming, and virtual reality content producer, has acquired Majesco Entertainment Company, a U.S. company that develops, publishes, and distributes video games. No transaction terms were released.

Jonas Operating Group has Acquired Pike13

Jonas Operating Group, a Canadian owner, and operator of software companies worldwide, has acquired Pike13 Inc., a U.S. developer of mobile client management software solutions. No transaction terms were released.

Martello Technologies has Acquired Elfiq

Martello Technologies, Inc., a Canadian provider of remote monitoring, network management, and remote access services, has acquired Elfiq Inc., a Canadian company that develops telecommunications and security solutions for business continuity, Internet, and WAN redundancy applications. No transaction terms were released.

ECi Software Solutions has Acquired PrintFleet

ECi Software Solutions, Inc., an Apax Partners, and The Carlyle Group L.P. backed U.S.-based company that develops and provides cloud-based and on-premise business management software solutions, has acquired PrintFleet Inc., a Canadian company that specializes in the development of data-driven device management and assessment software solutions. No transaction terms were released.

Apple has Acquired Doe Pics Hit

Apple Inc. (NasdaqGS:AAPL), has acquired Doe Pics Hit Inc., a Canadian developer of a mobile iteration platform for iOS and Android applications. No transaction terms were released.

Monster Byte has Acquired MoneyPot

Monster Byte Inc., a Panamanian company that owns and operates a suite of cryptocurrency gambling websites, has acquired MoneyPot Inc., a Canadian developer, and operator of a cryptocurrency web wallet that connects end users to multiple applications. No transaction terms were released.

Telecommunication Services (Closed)

IDEMIA has Acquired Otono Networks

IDEMIA, a French company that develops, manufactures, and markets security technology products and services, has acquired Otono Networks Inc., a Canadian provider of wireless telecommunication services. No transaction terms were released.

Zayo Group Holdings has Acquired Optic Zoo Networks

Zayo Group Holdings, Inc. (NYSE:ZAYO), a U.S. company that through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry, has acquired Optic Zoo Networks Ltd., a Canadian owner, and operator of high-capacity fiber network and infrastructure. Total transaction value is estimated to be $31 million.

Other (Announced)

DLT Resolution to Acquire Ajd Data Services

DLT Resolution Inc. (OTCPK:DLTI), a U.S. company that operates as a health information exchange company, has agreed to acquire Ajd Data Services Inc., a Canadian provider of secure document management solutions. Total transaction value is estimated to be $1.9 million.

DP Energy Ireland to Acquire Atlantis Operations

DP Energy Ireland Ltd, an Irish company that engages in investing and developing renewable energy projects worldwide, has agreed to acquire Atlantis Operations Ltd., a Canadian company that is a global developer of renewable energy projects. No transaction terms were released.

Other (Closed)

Colleges of Applied Arts and Technology Pension Plan has Acquired Youth Services Bureau Of Ottawa

Colleges of Applied Arts and Technology Pension Plan has acquired Youth Services Bureau Of Ottawa, a Canadian company that delivers a vast range of programs and services that support at‑risk youth and their families. No transaction terms were released.

 

 

[i] Includes all M&A transactions in which either the target or buyer is a Canadian private company.

 

 

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