Value Unleashed

Market Update

Thirty-eight Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 4.9% higher than the comparable period in 2016. The Canadian dollar depreciated by 1.26 cents, ending the week at 80 cents relative to the U.S. dollar. The TSX underperformed the S&P 500 by 1.1% in U.S. dollar terms. WTI Crude oil rose by 1.8%, ending the week at $51.95 per barrel.

According to The Lead Left, middle market leveraged loans in 2017 are estimated to reach their highest recorded levels since 2014 at $152.1 billion. The annualized middle market leveraged loans volume for 2017 represents a 9.6% increase from 2016, a trend that continues to be bolstered by the current low interest rate environment.

Valitas Insights: Negotiating M&A Concessions

Price isn’t everything in a deal negotiation. While maximizing or minimizing price (depending on which side of the table you sit on) can make or break a deal, a shared goal of both parties to an exclusive negotiation is getting the deal done. Both sides need to feel they are getting a good deal for a negotiation to work successfully, and that means concessions should be offered, appreciated, and reciprocated.

What are the most effective strategies when offering up concessions? We share insights from Harvard Business Review and get an on-the-ground perspective from M&A lawyer Jillian Swartz, partner at law firm Allen McDonald Swartz.

Read our full article to learn more.

And on other topics…

In this recent The DealRoom article, authored by Firmex, Paris Aden examines the value of sell-side due diligence.  Worth a read!

Canadian M&A Transactions[i]

Energy (Announced)

            Greenergy International to Acquire Can-OP

Greenergy International Ltd, a U.K.-based producer and supplier of road fuel internationally, has agreed to acquire Canadian Operators Petroleum, a Canadian company that operates as a fuel marketer and terminal operator. No transaction terms were released.

Materials (Announced)

            Wabi Exploration to Acquire Buena Vista Gold

Wabi Exploration Inc. (CNSX:WAB), a Canadian mineral exploration company, has agreed to acquire Buena Vista Gold Inc., a Canadian company that operates two precious and base metal properties in Nevada. No transaction terms were released.

            Canadian Mining to Acquire Care Mining Company

Canadian Mining Corporation (TSXV:CNG), a Canadian mineral exploration and development company, has agreed to acquire Care Mining Company Ltd., a Ghana-based gold mining and exploration services company. Care Mining Company Ltd. is a subsidiary of Crust Resources. Total transaction value is estimated to be $2.74 million.

Consumer Discretionary (Announced)

            Generic Gold to Acquire Wamco Technology Group

Generic Gold Corporation, a Canadian company that provides gold exploration services, has agreed to acquire Wamco Technology Group Ltd., a Canadian company that previously operated an online gaming website. No transaction terms were released.

Consumer Discretionary (Closed)

            Holiday Inn Express & Suites Sherwood Park Acquired

Holiday Inn Express & Suites Sherwood Park, a Canadian hotel operator has been acquired. Holiday Inn Express & Suites Sherwood Park was a subsidiary of Temple Hotels (TSX:TPH). Total transaction value is estimated to be $12 million.

Librairie Renaud-Bray has Acquired Prologue

Librairie Renaud-Bray Inc., a Canadian company that operates a chain of French-language bookstores in North America, has acquired Prologue Inc, a Canadian French-language book distributor. No transaction terms were released.

Consumer Staples (Closed)

            Premium Brands Holdings has Acquired Skilcor Food Products

Premium Brands Holdings Corporation (TSX:PBH), a Canadian manufacturer and distributor of food products throughout North America, has acquired Skilcor Food Products Inc., a Canadian manufacturer of portion-controlled meat products, packaged food brands, and various protein products. No transaction terms were released.

Healthcare (Closed)

            N. Harris Computer has Acquired MorCare

N. Harris Computer Corporation, a Canadian software solutions developer for customers in utility, public sector and healthcare group businesses, has acquired MorCare LLC, a U.S.-based developer of enterprise software solutions for the healthcare industry. No transaction terms were released.

Groupe Ergo Ressources has Acquired CREDE

Groupe Ergo Ressources, a Canadian operator of ergonomics and occupational therapy clinics, has acquired Centre Regional d'Ergotherapie pour le Developpement de I'Enfant, a Canadian rehabilitation services company. No transaction terms were released.

Financials (Announced)

            e-djuster to Acquire Contents Inventory Services

e-djuster Inc., a Canadian provider of contents claims handling solutions for insurers, has agreed to acquire Contents Inventory Services, a U.S.-based provider of claim investigation services. No transaction terms were released.

Information Technology (Announced)

            Siemens Aktiengesellschaft to Acquire Infolytica

Siemens Aktiengesellschaft (DB:SIE), a German supplier of power generation, transmission and medical diagnosis systems internationally, has agreed to acquire Infolytica Corporation, a Canadian developer of electromagnetic and thermal analysis software. No transaction terms were released.

Information Technology (Closed)

            Valsoft has Acquired ALDATA Software Management

Valsoft Corporation, a Valsef Capital backed Canadian software investment firm, has acquired ALDATA Software Management Inc., a Canadian developer of raw material supply chain management software. No transaction terms were released.

Personify has Acquired Wild Apricot

Personify Inc, a RCP Advisors, Farol Asset Management and Rubicon Technology Partners backed U.S.-based provider of software, consulting, interactive Web, and cloud hosting solutions, has acquired Wild Apricot Inc., a Canadian developer of membership management software for small associations and clubs. No transaction terms were released.

Zoom.ai has Acquired SimplyInsight

Zoom.ai Inc., a Betaworks Studio, Extreme Venture Partners and MaRs Discovery District backed Canadian developer of an artificial intelligence based automated virtual assistant, has acquired SimplyInsight, a Canadian data insight services provider. No transaction terms were released.

Telecommunication Services (Closed)

Tucows has Acquired Roam Mobility

Tucows Inc. (NasdaqCM:TCX), a Canadian provider of network access, email, mobile telephony, and other Internet services internationally, has acquired Roam Mobility Inc., a Canadian mobile talk, text, and data services provider for Canadians traveling in the United States. Roam Mobility Inc. is a subsidiary of Otono Networks. No transaction terms were released.

Utilities (Closed)

            Superior Plus has Acquired Canwest Propane

Superior Plus Corp. (TSX:SPB), a Canadian company that engages in the energy distribution and specialty chemicals business, has acquired Canwest Propane Ltd., a Canadian provider of propane supply, distribution, equipment, and related services in Western Canada. Total transaction value is estimated to be $435 million.