Major U.S. telecommunications companies have not registered for a Canadian wireless spectrum auction, raising doubts about the government's plans to introduce more competition into the mobile telephone sector. However, a unit of Canadian private equity firm Birch Hill Equity Partners Management Inc, tipped earlier as a possible bidder for small companies Wind Mobile and Mobilicity, appeared on the list of registered bidders. Private equity firm Catalyst Capital Group Inc, which owns Mobilicity debt, also signed up.
3 min read · 23 September 2013
The federal Minister of Finance Jim Flaherty announced that four Canadian venture capital funds have been awarded a total of $50 million from the $400 million Venture Capital Action Plan (VCAP). The funds are: Summerhill Ventures II, managed by Toronto-based Summerhill Venture Partners, which received $15 million; CTI Life Sciences Fund II, managed by Montréal-based CTI Life Sciences Fund, which received $15 million; Real Ventures Fund III, managed by Montréal-based Real Ventures, which received $10 million; and Lumira Capital II, managed by Toronto-based Lumira Capital Corp, which received $10 million. Among the provisions of VCAP, which was introduced in January 2013, was to commit capital to "high-performing" funds with a substantial Canadian market presence.
3 min read · 23 September 2013
U.S.-based private equity firm Sverica International has sold its portfolio company Pivot Data Centres Inc to Rogers Communications Inc (TSX: RCI.A and RCI.B; NYSE: RCI) for $155 million. The Calgary-based Pivot, which was previously known as Care Factor Computer Services Inc, is a provider of colocation data centre solutions, and was acquired in a control-stake deal by Sverica in November 2009. The company also received growth financing from RBC Capital Partners Mezzanine Fund in 2011 and 2012.
3 min read · 23 September 2013
Ottawa-based Granite Networks Inc, a provider of collocation, managed services and cloud hosting services to business and government clients, has been acquired by Rogers Communications Inc (TSX: RCI.A and RCI.B; NYSE: RCI) for $6.25 million. The company was the recipient of financing from angel investors, including the Ottawa-Gatineau-based Capital Angel Network, as reported by peHUB Canada in May. Rogers at the same time bought Pivot Data Centres Inc from U.S. private equity firm Sverica International.
4 min read · 23 September 2013
Montréal-based LXR & Co, an e-commerce specialist in vintage luxury products, made its Canadian launch with the help of a $1.5 million investment from the Business Development Bank of Canada (BDC). Founded earlier this year, the company features an online platform LXRco.com, which is currently operational in a dozen countries and has a boutique in Beverly Hills. BDC funding was provided to parent company LXR Canada, a wholesaler of vintage products in North America, and will be utilized for operational development.
3 min read · 23 September 2013
Saint-Georges, Québec-based Manac Inc, a manufacturer of vans, flatbeds and specialty trailers in North America, recently priced its previously announced initial public offering of subordinate voting shares on the Toronto Stock Exchange. In a prospectus filed on September 30th, the company flagged its intention to offer 4,761,905 shares at a price of $8.40 per share, giving Manac gross proceeds of $40 million. An over-allotment option could raise this amount to $42 million. Manac is currently a portfolio investment of U.S. private equity firm American Industrial Partners, which acquired a 50% interest in the company in 2012.
1 min read · 23 September 2013
Struggling smartphone maker BlackBerry on Monday signed a tentative deal to be acquired by a consortium led by its biggest shareholder, setting a $4.7 billion floor in the auction of the Canadian company that invented on-the-go email. The consortium is led by Fairfax Financial Holdings Ltd, a property and casualty insurer run by Canadian investor Prem Watsa. BlackBerry has until November 4 to seek superior offers, which is also the deadline for the Fairfax-led group to conduct its due diligence. Fairfax currently owns almost 10 percent of BlackBerry shares.
2 min read · 23 September 2013
Private equity firm TA Associates is considering selling its minority stake in First Eagle Investment Management, the manager of the First Eagle Mutual Funds, according to three sources familiar with the situation, sister news service Reuters reported.
1 min read · 23 September 2013
Allen-Vanguard, a portfolio company of Versa Capital Management, has sold its Explosive Ordnance Disposal business and its Crew Survivability business to SafariLand Group. No financial terms were disclosed. Based in Ottawa, Ontario, Allen-Vanguard is a provider of solutions for the military and homeland security markets. Update: Allen-Vanguard was taken private by U.S. private equity firm Versa in 2009. SafariLand, a manufacturer of protective products and equipment primarily for law enforcement and the military, was acquired by an affiliate of Kanders and Company in 2012.
2 min read · 23 September 2013
Sandwich chain Potbelly Corp expects its initial public offering to be priced at between $9 and $11 per share, raising as much as $82.5 million. sister news service Reuters reported.
1 min read · 23 September 2013
