Canadian gaming company Gateway Casinos & Entertainment Ltd has agreed to a sale-and-leaseback deal involving three casino properties in the Vancouver region. Under the agreement's terms, an affiliate of Chicago financial services firm Mesirow Financial will become the landlord of the properties for more than $500 million. Several of Gateway’s subsidiaries have entered into leases for each of the properties and will continue to operate the casinos. With the deal's close, expected in March, the company will see net proceeds of $483 million. Vancouver-based Gateway has been owned since 2010 by Canadian private equity firm Catalyst Capital Group.
6 min read · 26 February 2018
500px, a Toronto photo community and marketplace, has been acquired by Visual China Group (VCG) for an undisclosed sum. Founded in 2009, 500px provides an online platform for sharing, buying and selling photography created by professional and hobbyist photographers from more than 195 countries. VCG has been a strategic partner to the company, leading 500px's $13 million Series B round in 2015 and helping distribute its visual content in China. VCG said the buy is a "further investment in an already-successful partnership." Led by CEO Andy Yang, 500px was also backed by Andreessen Horowitz, ff Venture Capital, Harrison Metal Capital and others.
4 min read · 26 February 2018
Canadian mining company Lundin Gold Inc (TSX: LUG) has launched a US$400 million private placement financing that will complete funding requirements for its Fruta del Norte gold project in Ecuador. The deal's investors include Australia's Newcrest Mining Ltd, U.S. mining private equity firm Orion Mine Finance Group, Zebra Holdings and Lundin Family Trusts. Newcrest will invest US$250 million, giving the company ownership of 27.1 percent of Lundin’s outstanding shares, while Orion will account for US$100 million, giving it an 11.4 percent stake. Vancouver-based Lundin acquired the Ecuadorian project in 2014 as part of a US$240 million transaction.
5 min read · 26 February 2018
Canadian private equity firm TorQuest Partners has acquired a "significant" minority interest in A&W Food Services of Canada Inc, a Vancouver-based developer and franchiser of quick-service restaurants in Canada. No financial terms were disclosed for the deal, which saw TorQuest acquire the stake from several A&W of Canada Inc shareholders. As a result, TorQuest Partner Michael Hollend and Managing Partner Eric Berke have joined the board. The deal is part of a reorganization, intended to realize liquidity for some of A&W of Canada's long-standing investors. TorQuest is currently investing from TorQuest Partners Fund IV, which raised $925 million in 2016.
3 min read · 23 February 2018
Mavis Discount Tire, a Millwood, New York-based tire retailer and wholesaler, has agreed to merge with Express Oil Change & Tire Engineers, a Birmingham, Alabama-based provider of car care solutions. No financial terms were disclosed. With the deal, ONCAP, the mid-market investment arm of Canadian private equity firm Onex Corp, is selling its interest in Mavis, acquired in 2014, to Express backer Golden Gate Capital. The Sorbaro family, which partnered with ONCAP in a Mavis add-on acquisition in 2015, will lead the new U.S. automotive service platform. The deal is expected to close in 2018's first half. Mavis is also backed by Canadian private equity firm Penfund.
5 min read · 23 February 2018
Ontario Municipal Employees Retirement System (OMERS) reported a net investment return of 11.5 percent last year, compared to a benchmark of 7.3 percent, and a net return of 10.3 percent in 2016. Investments, which generated close to $10 billion of net income, helped grow OMERS' net assets to $95 billion at the end of December, compared with $85 billion a year ago. Among OMERS' private asset classes, private equity investments returned 11.1 percent in 2017, down from the year before, while infrastructure investments returned 12.3 percent, which is up. The Toronto-based pension fund will issue its 2017 annual report in March.
2 min read · 23 February 2018
LegUp Computing Inc has raised undisclosed seed-stage financing led by Intel Capital, the venture investment arm of U.S. technology giant Intel Corp. Based in Toronto, LegUp provides a cloud platform that allows software developers to program, deploy, scale and oversee field-programmable gate array (FPGA) devices for accelerating high performance applications. It will use the round's proceeds to commercialize its open-source synthesis tool, which is based on research at the University of Toronto. LegUp was founded in 2015 by Dr. Andrew Canis, Dr. Jongsok Choi, Ruolong Lian and Professor Jason Anderson.
4 min read · 23 February 2018
STEP Energy Services Ltd (TSX: STEP) has agreed to acquire the issued and outstanding capital stock of Tucker Energy Services Holdings Inc, a Houston-based provider of fracturing and completion solutions to the U.S. oil and gas industry. The deal has a total cash consideration of about $350 million (US$275 million). STEP, a Calgary-based oilfield service company, said the acquisition will give it strategic entry into the U.S. fracturing market in key high-growth basins. It will fund the buy with cash, credit facilities, and $50 million to be raised through an equity offering. STEP, which went public last year, is backed by Canadian energy private equity firm ARC Financial Corp.
10 min read · 23 February 2018
D-Wave Systems Inc has received a commitment from Public Sector Pension Investment Board (PSP Investments) for an additional $25 million (US$20 million) of a US$50 million convertible notes facility. D-Wave raised US$30 million with the facility's announcement last year. The Vancouver quantum computing systems and software company said it completed a prototype of a next-generation quantum processor with the help of PSP's initial investment. The facility's second tranche will support bringing the product to market. D-Wave, which is led by CEO Vern Brownell, said the deal brings its total funding to about $280 million (US$220 million).
3 min read · 22 February 2018
Greenlight Financial Technology Inc, an Atlanta, Georgia-based developer of a smart debit card for kids, has secured US$16 million in a Series A financing. The round was led by TTV Capital, a U.S. venture capital firm. It was joined by existing investors, including Canadian mobile venture capital firm Relay Ventures, which led the company's US$7.5 million seed financing last year. Greenlight, launched in 2014, said it will use the Series A's proceeds to fuel growth and advance its goal of strengthening financial literacy among kids by investing in new talent and new solutions.
4 min read · 22 February 2018
