Q-News

October 2009

Private Equity - September 2009

Posted in Private Equity

During the month of September, 10 companies reported completed financings with eight of these including details on the amount of capital actually raised, which totaled $50.1 million.  These results are a far cry from the 14 transactions and $230.6 million announced in September 2008.  However, the 10 transactions this month represented the second highest number of deals we have seen in any one month over the course of the past year.  Seven of the ten transactions took place in Ontario while Alberta, Quebec, and Newfoundland accounted for one transaction apiece.  Technology companies accounted for seven of the financings while a cleantech, a telecom and a consumer product food company accounted for the remaining three.  Canadian investors followed a similar pattern with their investments into the US market where they made three technology-driven investments and one in the cleantech space.

 

 

Financings of Canadian Companies:

 

High Fidelity HDTV, a Toronto-based broadcast and production company with a focus on HD programming, raised $1.5 million from C.A. Bancorp (TSX: BKP).

 

Newfoundland’s Verafin, which develops risk management and compliance tools for the financial services industry, raised $5.5 million from RBC Venture Partners.

 

Ontario-based XPI, which develops online solutions for tracking publicly listed companies, raised capital from several investment vehicles managed by BEST Funds.

 

Toronto’s CanGro Foods, which manufactures and markets food products under the Aylmer, Del Monte and Ideal names, announced a $20 million capital injection from Penfund.

 

Solace Systems, a networking middleware developer operating in Ottawa, raised $7.4 million in new capita.

 

Systems With Intelligence, a Mississauga company that supplies intelligent video surveillance solutions to the electric utility industry, raised $2.0 million.

 

 

U.S. Activity in Canada:

 

Mistral Equity Partners of New York made an investment in Worldlynx Wireless, a recently formed entity that was established for the purpose of buying out ten independent Bell Mobility wireless dealers across Canada. 

 

Boston’s Auctus Private Equity Fund agreed to provide upwards of $10 million in financing to Capital Reserve Canada (OTCBB: CVSVF.OB), an environmental technology company developing several industrial-scale projects in Alberta.

 

JK&B Capital (IL), Innovacom SA (SF), and Entrepia Ventures (CA) participated in a $3.2 million raise by Vantrix Corporation, which provides content adaptation and optimization solutions across wireless, broadband, and cable networks.  The Canadian players in the deal were Summerhill Venture Partners and BDC Venture Capital. 

 

Intel Capital made a $0.5 million investment in TransGaming (TSX-V: TNG), a Toronto-based developer of online gaming via the company’s GameTree.tv platform. 

 

 

Canadian Investments South of the Border:

 

Summerhill Venture Partners participated in a Series A round just completed by Massachusetts-based Sonian, which provides SaaS-based data management services. 

 

MMV Financial put up $3 million in financing for EnterpriseDB, a Massachusetts-based provider of open source database solutions for enterprise clients.  

 

Jefferson Partners was part of a syndicate that put up $17 million in Series B financing for Accept, a California-based developer of enterprise level innovation management solutions.

 

XPV Capital made an investment in Aptwater, a water treatment technology developer based in California.

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