The May 2013 close of ViXS Systems Inc.'s going-public financing, which raised $57.4 million for the Toronto-based semiconductor company, is the second completed in 2013 by Canadian venture capital firm Celtic House Venture Partners. In February, portfolio company Spectra7 Microsystems Inc., also based in Toronto, established a listing on the Toronto Stock Exchange. A third portfolio company, insurance software-focused Camilion Solutions Inc., was acquired by SAP in March.
4 min read · 28 May 2013
Mergers and acquisitions (M&A) in Canada were on a downward trend in the first quarter of 2013, reported Crosbie & Company. Led by activity in the real estate sector, the Financial Post Crosbie: Mergers & Acquisitions in Canada database found 195 transactions worth $25.9 billion in this period, which is the lowest in four years. Crosbie cited "macro-economic uncertainty, the impact of low rates, as well as certain sector-specific issues” as the potential causes of "lacklustre" M&A activity.
4 min read · 28 May 2013
Montréal-based Valeant Pharmaceuticals International Inc. has agreed to buy eye care specialist Bausch + Lomb Holdings Inc. from U.S. private equity firm Warburg Pincus, which acquired the Rochester, New York-based company in 2007. The agreement, which has been approved by the directors of both companies, provides that Valeant will pay US$8.7 billion in cash, of which around US$4.5 billion will go to Warburg Pincus and other investors, and around US$4.2 billion will be used to repay Bausch + Lomb's debt. The deal is expected to close in the third quarter of 2013.
7 min read · 28 May 2013
Life sciences-focused venture capital firm Lumira Capital received the 2013 "Deal of the Year" award in the venture capital category from Canada’s Venture Capital & Private Equity Association. The firm won for its return on investment in KAI Pharmaceuticals Inc. The San Francisco-based bio-pharmaceuticals company was acquired last year by Amgen Inc. for US$315 million. Lumira's IRR on the KAI investment was 21% and the multiple of capital on its original investment was 3.9 times (current) and 4.2 times (final based on escrow release).
5 min read · 24 May 2013
Marzio Pozzuoli, founder and former President and CEO of RuggedCom Inc., has been named the 2013 ‘Entrepreneur of the Year’ by Canada’s Venture Capital & Private Equity Association. Pozzuoli led RuggedCom, a communications networking solutions company, at the time of its Series A financing in 2003, and its initial public offering in 2007. The company was acquired by Siemens AG in 2012 for $440 million, providing its Canadian venture capital investors with a return on capital of approximately 19X and an IRR of over 48%.
4 min read · 24 May 2013
Private equity firms Clairvest Group and Teachers' Private Capital have both won the 2013 ‘Deal of the Year’ award in the private equity category from Canada’s Venture Capital & Private Equity Association. Clairvest won for the 2012 sale of PEER 1 Network Enterprises Inc. to Cogeco Cable Inc. for an equity value of $526 million, giving the firm a 40% IRR and 3.2 times its original investment. Teachers was awarded for last year's sale of Maple Leaf Sports and Entertainment Ltd. to BCE Inc. and Rogers Communications Inc. for over $1.3 billion, giving the firm a 16% IRR and 5.3 times total invested capital.
6 min read · 24 May 2013
Proxy advisory and research firms Institutional Shareholder Services Inc. and Glass Lewis & Co. have recommended that clients who are shareholders in IT solutions provider Softchoice Corp. vote in favour of Birch Hill Equity Partners' previously announced acquisition of the company for $412 million. The take-private deal has already been recommended by the Toronto-based Softchoice's board of directors, and it will be submitted to a special shareholders meeting in June.
4 min read · 24 May 2013
Canadian buyout firm Onex Corp. has suspended its auction of portfolio company Carestream Health Inc., a Rochester, New York-based medical imaging systems provider, reports Reuters. Onex, which was unable to find a buyer willing to meet its price expectation of US$3.5 billion, is now considering alternatives, such as a dividend recapitalization, sources said. Potential buyers reportedly included Bain Capital and Thomas H. Lee Partners. Onex bought Carestream in 2007.
1 min read · 24 May 2013
Canadian venture capital firm Northwater Capital Management has invested US$3 million in a Series A financing of RedWave Energy Inc., which develops energy harvesting products from infrared through visible light, according to a report by Bloomberg. RedWave, based in Glen Ellyn, Illinois, will reportedly seek a Series B round after starting work on a prototype that may be tested in power-plant conditions. Toronto-based Northwater invests in intellectual property and intellectual property-rich companies.
1 min read · 24 May 2013
Vancouver's LX Ventures, a publicly traded business incubator, has completed its previously announced purchase of Vancouver-based Mobio Technologies Inc., a developer of identity and trust solutions. LX Ventures acquired the company for approximately $400,000 in stock, plus revenue sharing. Mobio was a portfolio company of Rho Canada Ventures and raised venture capital funding in 2011 and 2012.
3 min read · 24 May 2013
