Resources Articles of Interests
Cross Border Activity – January 2008
Cross border financing started slow in 2008, however M&A activity saw 2 U.S.-based Private Equity firms acquire Canadian companies, as well as 2 European companies involved in acquisitions.
Details of January’s cross border activity are listed below.
U.S. Activity in Canada
CiRBA Inc. (Ontario), a developer
of Data Center Intelligence software, raised $12 million in its second
round of institutional funding led by Sigma Partners (California). Existing investors including EdgeStone Capital Partners (Toronto) and others also participated in the round.
Pangaea Ventures Ltd. (British Columbia) received an investment from Toyota Tsusho America, Inc.
in its Pangaea Ventures Fund II, LP. Toyota Tsusho America joins BASF
Venture Capital, Solvay and Ciba Specialty Chemicals as a strategic
limited partner in the fund. Terms of the deal were not disclosed.
Cross Border M&A
March Networks
(TSX:MN; AIM:MNW) (Ottawa), a leading provider of intelligent IP video
and business analysis applications, entered into a definitive agreement
to acquire Cieffe S.p.A. (Italy)
and its related company Insignis Technologies S.r.l. Cieffe develops
high performance IP video surveillance solutions used by
enterprise-class organizations across Europe, the Middle East and Asia
Pacific. A total purchase price of €20.0 million plus an earn-out
component of up to €10.0 million in cash, is expected to close by the
end of March 2008.
Sagent Solutions (New Jersey), a specialist in virtualization, was acquired by Versatile Systems Inc.
(TSXV:VV) (British Columbia). Versatile management says that “the
majority of the consideration” for the acquisition consists of
four-year warrants to buy 600,000 common shares at 30 cents per share.
Call Genie Inc. (TSX: GNE) (Toronto), a provider of local search solutions, acquired PhoneSpots Inc. (California) for $5.75 million. PhoneSpots Inc. is a provider of advertising and mobile content delivery solutions.
Xeye (Ontario), a provider of advanced solutions to top wealth management institutions, was acquired by Odyssey Financial Technologies
(Switzerland), a provider of wealth and asset management software
solutions, for an undisclosed amount. Xeye’s management believes
joining Odyssey will accelerate entry into global markets and increase
investment in research and development.
NDI (Ontario) completed a transaction in which controlling interest of NDI was sold to Audax Group
(Massachusetts), an investor in middle market companies. NDI is a
provider of innovative measurement technology. Terms of the deal were
not disclosed.
Private equity firm Red Diamond Capital (New York) acquired W.C. Wood Group of Companies
(Ontario), an international manufacturer of chest and upright freezers
and refrigerators, and dehumidifiers for the consumer and commercial
markets. Terms of the acquisition were not disclosed.
Net Integration Technologies Inc.
(Toronto), a privately held company that offers a complete business
server software solution for small businesses was acquired by IBM (NYSE: IBM). Terms of the deal were not disclosed.