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Cross Border Activity - October 2008

Posted in Cross Border Activity

In October there were two financings and two acquisitions involving US-based firms.  Four transactions is weak deal flow but at least it does illustrate that, in spite of what has transpired in the markets over the last couple of months, US-based VC firms and PE shops are still looking at Canadian companies.  Going forward, favorable exchange rates and depressed valuations should continue to generate some measure of sustained interest from foreign investors.

Details of October’s cross border activity are listed below.

 

U.S. Activity in Canada

 

Colorado’s Altira Group led a $15.4 million Series B Round financing for NxtGen Emission Controls. The Vancouver-based company is developing a technology that reduces engine emissions through combustion optimization. 

 

New Jersey’s Zon Capital participated in a $3.5 million financing for DFT Microsystems, a Montreal-based developer of test equipment for semiconductors.

 

 

Cross Border M&A

 

PNC Equity Partners, a Pennsylvania-based PE shop, acquired The Orthotic Group, a manufacturer of custom orthotics operating out of Markham, by way of a management buyout.  

 

HIG Capital financed a merger of BC’s Q1 Production Technologies and California-based Ed & Ted’s Excellent Lighting.  The merged entity has been rebranded as Epic Production Technologies, a one-stop rental source of lighting systems for concerts, theatrical productions and special events.