Q-News
January 2010
Posted in M&A News
There were six private M&A transactions reported
during December with four of these involving TSX-traded companies acquiring a
private Canadian company. The only
cross-border transaction involved a private, Canada-based acquirer taking over
a none-core asset of a large, US-based company.
In January 2010 we came across 11 M&A transactions in
the private markets. Nine of the deals were
cross border acquisitions, with a Canadian party acting as the buyer in three
of these transactions – buying two companies in Europe and another in Hong Kong. Four of
the private Canadian companies acquired in January are software businesses
while a fifth sells software-driven diagnostic devices to the healthcare
sector.
Canadian M&A
Transactions – December 2009
Fitness World, a BC-based fitness club chain, was acquired by a group that
includes NBA star Steve Nash. The
business was merged with Steve Nash Sports Club to
form Steve Nash
Fitness World.
5N Plus (TSX: VNP), a Quebec
metals producer, bought BC-based FireBird Technologies, a semiconductor
products and pure metals manufacturer.
The details of the transaction were not disclosed.
Hosted Data Transaction (TSX: HDX), the Toronto company behind the Dexit tag, which
serves as an alternative to debit and credit cards in facilitating merchant
transactions, acquired Cash n’go, an Alberta-based company
operating a network of approximately 1,200 ATMs across Canada.
HTC Purenergy (TSX.V: XTC), a Saskatchewan-based developer of carbon capture
and carbon management technologies, acquired a majority interest in Carbon
Capital Management, an Ontario firm focused on carbon offset
origination, finance and trading, from Front Street Capital.
Canadian Parkland Income Fund (TSX: PKI.UN), an Alberta-based
operator of retail and wholesale fuels and convenience stores, entered into an
agreement to acquire Bluewave
Energy Limited Partnership, a Nova Scotia-based petroleum distributor, for
$214 million.
Canadian M&A Transactions –
January 2010
A group of large Québec funds sponsored an $11.5 million
management buyout of TeraXion, a Québec-based developer of
components for high speed optical networks. Solidarity
Fund QFL provided $5.5 million, the Caisse de dépôt
et placement du Québec $3.5 million, Fondaction CSN $2 million
and Accès-Capital $0.5 million.
Ottawa-based Harris
Computer Systems, a subsidiary of Constellation Software (TSX: CSU),
acquired SDS Software, a BC-based company
that provides management software to schools, utilities and government
bodies.
Cross Border M&A
– December 2009
TorQuest Partners, a Toronto-based private equity
fund, agreed to acquire Hercules
Specialty Resins, a refined wood rosin and natural wood terpenes
business, from Delaware-based Hercules,
a subsidiary of Ashland (NYSE: ASH), for $75 million.
Cross Border M&A – January
2010
NewsGator Technologies, a Denver-based internet and social computing
developer, has agreed to acquire Tomoye
Corporation, a Gatineau-based producer of social collaboration software
for enterprises. The acquisition will increase NewsGator’s market share
and give them a diversified portfolio of social-networking products. In
addition, the acquisition will allow NewsGator to provide a full range
of SharePoint-related products.
Open Link Financial, a New York-based developer of cross-asset,
trading, risk, operational and portfolio management software, has acquired dbc
SMARTsoftware, a Kitchener-based company that develops software for the
agricultural, biofuel and soft commodity industries. Management stated that the acquisition will
strengthen and diversify Open Link’s existing offering.
Ottawa-based Epocal,
the developer of a blood-testing technology that uses smart card sensors to
diagnose patients, was acquired by Inverness Medical Innovations
of Boston. The transaction price is based on Epocal’s ability to hit certain
performance and development targets over the next five years. The deal may end up being worth up to $255
million. Epocal has raised approximately $40
million from investors that include Genesys
Capital Partners, MMV
Financial, and Highland
Capital Management LP (TX).
Rebtel Networks AB, a Stockholm,
Sweden-based provider of consumer calling services, acquired the Free World Dialing consumer calling
service from Toronto-based Talkster. The acquisition will expand Rebtel’s customer base
as it will allow Talkster customers to use Rebtel computer calls and short
message services.
In an all stock transaction
estimated to be between $8 and 12.5 million, Australian-based Pharmaxis
is set to acquire TOPIGEN Pharmaceuticals, a Montreal-based
biopharmaceutical company developing drugs for respiratory diseases. The
transaction is expected to close in March 2010. TOPIGEN had previously secured venture funding
from NovaQuest
(formerly PharmaBio Development), Desjardins Venture Capital,
Caisse
de depot et placement du Quebec, BDC Venture Capital, MMV Financial, and T2C2/Bio
2000 Fund, and Lothian Partners 27 (sarl) SIKAR which
is a subsidiary of UK-based Coller Capital.
Private equity firm Riverside (NY) acquired BC-based EMP
Canada Services, a first aid and industrial safety training agency with
training centers across Canada. The terms of the deal were not disclosed.
Ontario Teachers’ Pension
Plan backed a management buyout of Acorn
Care and Education, thereby taking control of the company
from London-based Phoenix Equity Partners. Acorn Care and Education operates 10 schools
for special-needs children across the UK.
Boucherville-based Technyx,
a Canam Group (TSX: CAM)
subsidiary that provides services in the Building Information Modeling (BIM) industry,
acquired the assets of Hong
Kong-based InteliBuild Limited in order to
expand its reach into Asia. Financial details were not disclosed.
Montreal’s Objectif Lune, which
develops software for the data printing industry, acquired Edmond Document Solutions, a Nijmegen,
Netherlands-based provider of enterprise document presentment solutions.
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