Private Equity
Northleaf Capital Partners has added three professionals to its global private credit team. The hires include David Jeyes, who joined as a senior credit officer in London. He was previously a senior executive leading restructurings and turnarounds for firms and banks in Europe. Brett Donner also joined as an associate in Northleaf’s Chicago office. He was previously an analyst on the global private finance team at Barings. And Joan Li was hired as a senior manager in Toronto. She joined from Canada Pension Plan Investment Board, where she was a manager, investment finance. Toronto-based Northleaf is a private-markets fund manager, overseeing more than $12 billion in commitments.
3 min read · 09 April 2019
Geotab Inc has agreed to acquire the issued and outstanding common shares it does not already own of BSM Technologies Inc (TSX: GPS), a Toronto-based provider of GPS telematics and asset management solutions. Geotab agreed to pay $1.40 per share, which represents an equity value of about $117.3 million. The deal is expected to close in Q2 2019. BSM shareholders holding or controlling about 23 percent of outstanding shares have agreed to vote for the transaction. They include U.S. hedge fund Crescendo Partners and Canadian mutual fund company Penderfund Capital Management. Based in Oakville, Ontario, Geotab is a provider of fleet management software and GPS vehicle tracking devices.
7 min read · 09 April 2019
Swiss private equity firm Partners Group has opened an office in Toronto, its fourth in North America. Co-CEO David Layton said the new location will allow Partners Group to "cater to increasing demand from a broad spectrum of Canadian institutions for private markets solutions." To run the office, the firm appointed Brad Ballard, a former director at U.S. investment firm BlackRock. Ballard will manage the Toronto team and develop a Canada-wide network. Partners Group's Canadian investments have included the passenger terminal at Billy Bishop Toronto City Airport, sold in February, and Axia NetMedia Corp, a Calgary-based services provider on fibre communications infrastructure, sold last year.
3 min read · 09 April 2019
North American Palladium Ltd (TSX: PDL) (NAP), a Toronto-based palladium producer, announced a secondary bought deal offering of about 5.8 million common shares at a price of $13 per unit. The offering, which will generate $75 million in proceeds, not including the greenshoe option, is being made on behalf of the private equity group of Brookfield Asset Management, NAP's majority shareholder. Upon completion, but prior to the exercise of the greenshoe option, Brookfield's interest in the company will be reduced to about 81 percent from 91 percent. NAP was recapitalized by Brookfield in 2015.
3 min read · 08 April 2019
Canaccord Genuity Growth II Corp (CGGC II), a Canadian special purpose acquisition corporation (SPAC), has completed its initial public offering (IPO), raising more than $100 million. The proceeds include the full exercise of the IPO's greenshoe option. CGGC II's Class A restricted voting units began trading on April 5 on the Neo Exchange under the symbol CGGZ.UN. CGGC II, managed by an affiliate of Canaccord Genuity Group Inc, is expected to target an operating business valued at $100 million to $1 billion. CGGC II’s predecessor raised $46 million from its 2018 IPO. In the same year, it agreed to merge with Columbia Care LLC, a New York-based medical cannabis company.
4 min read · 08 April 2019
Blue Acorn, a Charleston, South Carolina-based digital commerce UX design and strategy agency, has merged with iCiDIGITAL, a Raleigh, North Carolina-based data-driven marketing solutions provider. Terms weren't released for the deal, which was led by Canadian advertising and marketing private equity firm Beringer Capital. Beringer acquired Blue Acorn and iCiDIGITAL in 2017. The new business, Blue Acorn iCi, will be led by Co-CEOs Greg Boone and Kevin Eichelberger. Concurrent with the merger, Blue Acorn iCi acquired BrandShop, a Shelton, Connecticut-based direct-to-consumer commerce company, for an undisclosed amount.
3 min read · 05 April 2019
OMERS Infrastructure has agreed to acquire a 10.01 percent stake in 407 International Inc, a Woodbridge, Ontario-based holder of a concession over 407 Express Toll Route (407 ETR). The purchase price consists of an upfront payment of $3 billion. The seller, Canadian engineering business SNC-Lavalin Group Inc, said in a statement that its total proceeds could reach $3.25 billion over time. The deal is expected to close within two months. 407 ETR is an all-electronic, barrier-free toll highway located in the Greater Toronto Area. It is also owned by Ferrovial SA, which currently holds a 43.23 percent interest, and Canada Pension Plan Investment Board.
2 min read · 05 April 2019
Prophix Software, a Mississauga, Ontario-based provider of corporate performance management software, has secured $10 million in debt financing. The funding was provided by BDC Capital's Growth and Transition Capital group and CIBC Innovation Banking, the technology lending arm of CIBC. Established in 1987, Prophix provides solutions that help mid-market businesses improve profitability and minimize risk by automating budgeting, planning and reporting. It has more than 3,000 customers worldwide. Led by CEO Paul Barber, Prophix will use the deal's proceeds to scale its organization and invest in key innovations and technologies, such as artificial intelligence.
3 min read · 04 April 2019
Whitehorse Liquidity Partners has raised more than half of the US$1.5 billion target set for its third secondaries fund, according to a report by the Wall Street Journal. The Canadian private equity firm has collected at least US$1.9 billion in the past two years, the report said. Last September, Whitehorse announced the close of its second secondaries fund, Whitehorse Liquidity Partners Fund II, at its US$1 billion hard cap. The Toronto-based firm was founded in 2015 by Managing Partner Yann Robard, who previously led the secondaries and co-investments program of Canada Pension Plan Investment Board. Whitehorse specializes in making preferred equity investments in private equity portfolios.
1 min read · 04 April 2019
This is the third article in a three-part PE Hub Canada series on what CEOs, managers and investors must consider in the various stages of a business transition. Previously, Larry Kaumeyer, a CEO who grows and oversees businesses for a private equity firm, discussed pre-acquisition considerations and the realities of the post-acquisition period. In this third piece, he looks at how CEOs and owners—including private equity owners—can prepare to sell a business, sharing his tips on several factors that are key to getting to the finish line.
4 min read · 04 April 2019
