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Canadian Private Market Recap: April 27

  • Posted By: Ari Cuperfain

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Last week’s activity in the Canadian private market included a number of financial and strategic acquisitions, asset purchases, and two announced IPOs, one through a reverse takeover. Here are the major deals for the week.

M&A

ProTrace Engineering Acquired by Chromalox

Thermal technology manufacturer, Chromalox, announced the strategic acquisition of ProTrace Engineering. The financial details of the transaction were not disclosed. Based in Calgary, Alberta, ProTrace Engineering provides electrical engineering services in the oil and gas industry, specializing in electric heat tracing among other areas of expertise. “The acquisition of ProTrace was a natural fit for Chromalox as we continue to focus on expanding our engineering services to support our global heat trace business and other power system engineering service offerings,” said Scott Dysert, CEO of Chromalox. Chromalox is owned by U.S. private equity firm Irving Place Capital.

Rubicon Project Closes $122 Million Acquisition of Chango

The $122 million sale of Chango Inc. to Rubicon Project (NYSE: RUBI) closed this past week. Chango focuses on online intent marketing; they were selected by Deloitte as the fastest growing Canadian technology company in 2014 as part of the Technology Fast 50™. Chango’s shareholders consisted primarily of US and Canadian venture capital firms.

TriWest Capital’s NCSG to purchase PE-backed B&G Crane Service

NCSG Crane & Heavy Haul Corporation, headquartered in Edmonton, Alberta, has agreed to purchase family business B&G Crane Service, LLC for an undisclosed amount. Based in Louisiana, B&G operates a fleet of 150 cranes and 100 trucks for rental use. Similarly, NCSG provides rigging, lifting and heavy haul services throughout Canada and the US. Of B&G Crane Service, NCSG CEO Tod Redmond said, “B&G is a great business with a proud history of providing outstanding service to its many customers in Texas and Louisiana.” NCSG is backed by several private equity firms, including TriWest Capital Partners. This is NCSG’s 12th acquisition in the last nine years.

D+H Completes $1.25 Billion Acquisition of Banking Software Company, Fundtech

D+H Corp (TSX: DH) completed its purchase of Fundtech Ltd, a FinTech company offering software services for transaction banking. The acquisition was valued at US $1.25 billion, paid all in cash, funded through a combination of equity and debt. D+H is a financial technology provider based in Toronto, Ontario, and was recently ranked as the #1 SaaS company in Canada by Branham300, for the third consecutive year. D+H’s acquisition of Fundtech is expected to expand their global reach by broadening their global payment service offerings.

Waiward Steel Fabricators Acquired By Abacus Private Equity & Hillcore Group

Waiward Steel Fabricators Ltd was acquired by Abacus Private Equity Ltd., a subsidiary of the Hillcore Group. The value of the deal was not reported. Based in Edmonton, Alberta, Waiward is one of Canada’s largest industrial steel fabricators. They also offer construction services such as site preparation, concrete and steel deployment. Moving forward, Waiward will be operated in partnership by existing management and the Hillcore Group.

Financing

Media Company Stingray Unveils Plans for IPO

Stingray Digital Group Inc. announced its plans to file for an IPO on the Toronto Stock Exchange. Although not officially reported by Stingray, sources close to the company say that they expect to raise around $120 million through the IPO scheduled to close in early June. Stingray is a global B2B company offering multi-platform music and in-store media solutions. They reach an estimated 110 million Pay-TV subscribers in over 100 countries. Stingray is headquartered in Montreal, Quebec and has over 225 employees both in Canada and internationally.

Profound Medical Announces Plans to Go Public with Concurrent $28 Million Financing

Profound Medical Inc. (PMI) plans to launch a going-public transaction through a reverse takeover of Mira IV Acquisition Corp (TSXV: MRY.P). PMI is a medical device company based in Toronto that develops and commercializes a novel therapeutic intervention for the treatment of prostate cancer. In addition to the reverse takeover, PMI completed a private placement for gross proceeds of approximately $24 million. Their base of preexisting venture capital investors – Genesys Capital and BDC Capital –joined in the offering and assisted in providing bridge financing. Additionally, Knight Therapeutics Inc. (TSX: GUD) provided a secured loan of $4 million to bring the total additional financing to $28 million.

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