Private Equity
Compass Datacenters LLC has acquired ROOT Data Center, a Montréal-based wholesale data centre provider, for an undisclosed amount. ROOT was founded in 2014. The company's CEO, AJ Byers, will join Compass as president, international. ROOT has been backed by U.S. private equity firm ABRY Partners, which invested $25 million in 2016, and U.S. investment manager Goldman Sachs, which invested $90 million a year later. Compass, a Dallas-based data centre developer and operator, said the acquisition extends its footprint into the Montréal market and adds significant scale to its platform. RedBird Capital Partners and Ontario Teachers' Pension Plan together acquired a majority stake in Compass in 2017.
4 min read · 23 July 2019
Ratio.City, a Toronto-based urban analytics platform, has raised $1 million in a seed-stage financing. U.S. early-stage venture capital firm 2048 Ventures led the round. Also investing were Riocan Real Estate Investment Trust, Tercot Developments, Rockport Capital, Smycorp Capital and Guloien Capital. Founded in 2017 by CEO Monika Jaroszonek and CTO Erin Morrow, Ratio.City provides cloud-based mapping and analysis tools to help developers and planners access data, evaluate options and make better decisions about real estate opportunities. The round's proceeds will be used to grow Ratio.City's sales team and enhance the platform by bringing on more data points and geographical locations.
3 min read · 23 July 2019
Toronto-based sports team funding app FlipGive has secured $5 million in a Series A financing. The round was led by Canadian software venture capital firm Framework Venture Partners. Framework's investment is the first of its $150 million debut fund, FVP I, which held an initial close earlier this year. It was joined by iGan Partners, which invested in 2013, and FJ Labs. Launched in 2016, FlipGive provides a digital platform that helps North American youth sports teams, member organizations and clubs raise funds through everyday shopping with favourite brands. The company will use the round's proceeds for new hires, enhanced product features, additional brand partners, marketing and member acquisition.
4 min read · 23 July 2019
Catalyst Capital Group has offered to buy up to 14.8 million common shares of Canadian retailer Hudson's Bay Co (TSX: HBC) for $10.11 per unit, or $150 million. The offer will remain open until August 16 unless it is extended, varied or withdrawn. Catalyst, a Canadian private equity firm, said it is taking the step to oppose the $1.74 billion take-private acquisition of Hudson's Bay, announced last month. Catalyst said the proposed deal, led by Executive Chairman Richard Baker, does not reflect the fair value of Hudson's Bay's shares and undervalues the company "across each of its real estate, retail and iconic brand attributes." Other shareholders that oppose the transaction include U.S. hedge fund Land & Buildings Investment Management.
8 min read · 23 July 2019
A group led by U.K. private equity firm BC Partners and Chairman and CEO Stephan Crétier have agreed to acquire Garda World Security Corp, a Montréal-based security services provider, in a $5.2 billion recapitalization. The announcement confirms an earlier report by the Wall Street Journal. The seller is U.S. private equity firm Rhône Capital, which partnered with Crétier in 2017 to acquire Garda World from Apax Partners. The deal, expected to close later this year, will see BC Partners hold a 51 percent interest in the company, while Crétier and other members of the management team will hold 49 percent. Founded in 1995 by Crétier, Garda World provides a range of physical and specialized security solutions, as well as end-to-end cash management.
5 min read · 23 July 2019
DW Healthcare Partners (DWHP) has closed its fifth healthcare private equity fund, securing US$610 million of committed capital. DW Healthcare Partners Fund V is the Toronto- and Park City, Utah-based firm's largest fund to date, more than double the size of its predecessor, which raised US$295 million in 2017. The close brings DWHP's total capital under management to US$1.43 billion. Fund V will maintain the firm's strategy of making control investments in North American mid-market healthcare businesses. Founded in 2002 by Managing Partner Andrew Carragher and Managing Director Jay Benear, DWHP has invested in 34 platform companies and 52 add-on acquisitions.
2 min read · 23 July 2019
U.K. private equity firm BC Partners is nearing a deal to buy a majority interest in Garda World Security Corp, a Montréal-based security services provider, according to a report by the Wall Street Journal. The agreement, which values Garda World at about $5.2 billion, would see BC Partners own a 51 percent stake, the report said. Garda World's founder, Chairman and CEO Stephan Crétier, would hold the rest along with other members of the management team. Garda World was acquired in 2017 by U.S. private equity firm Rhône Capital and Crétier. The seller was U.K. private equity firm Apax Partners, which led a consortium in 2012 to buy the company for $1.1 billion.
1 min read · 23 July 2019
Caisse de dépôt et placement du Québec (CDPQ) said deterioration in the performance of SNC-Lavalin Group Inc (TSX: SNC), a Montréal-based construction and engineering company, is a "cause of growing concern." SNC Lavalin today reported lower results in 2019 than previously anticipated. It said it will alter strategic direction, including exiting lump-sum turnkey contracting and reviewing options for its resources unit. CDPQ, which holds a 19.9 percent stake in SNC Lavalin, said the strategy must be comprehensive and "capable of reversing the current unacceptable trend of the business." In 2017, CDPQ backed SNC-Lavalin's $3.6 billion acquisition of U.K.-based WS Atkins Plc.
2 min read · 22 July 2019
Thomson Reuters (TSX, NYSE: TRI) has closed its acquisition of Confirmation, a Nashville, Tennessee-based provider of secure audit confirmation services. Terms weren't released for the deal, which was announced last month. Founded in 2000, Confirmation provides digital confirmation services to more than 16,000 audit firms, 4,000 banks and departments, and 5,000 law firms in 170 countries. Thomson Reuters, a Toronto-based provider of business information services, said the acquisition strengthens its offering to the tax, accounting and audit industry. Confirmation was backed by U.S. mid-market private equity firm Great Hill Partners. Great Hill invested US$60 million in the business in 2016.
2 min read · 22 July 2019
Odey Asset Management said it intends to vote in favour of Barrick Gold Corp's final offer to buy out minority shareholders of Acacia Mining plc, a London, U.K.-based gold producer in Africa, Reuters reported. Odey, a U.K. hedge fund manager, previously said it would reject any offer from Barrick for its Acacia stake that is framed as “best and final,” the report said. Barrick, a Toronto-based gold mining company, last week offered 0.168 of its shares for every Acacia share, up from an earlier 0.153. The transaction values Acacia at about £951 million ($1.5 billion). Barrick currently owns about 64 percent of Acacia, according to Reuters.
1 min read · 22 July 2019
