Private Equity
Lawyers expect cross-border deals to again drive Canadian merger and acquisition activity in 2016 after aggressive moves by Canadian companies spurred a major surge in M&A transactions last year, Reuters reported. Osler, Hoskin & Harcourt topped the list of law firms that advised on M&A deals involving Canadian entities in 2015, followed closely by its Canadian rivals McCarthy Tétrault and Torys, according to Thomson Reuters data.
2 min read · 08 January 2016
Vancouver-based Zymeworks, a biotherapeutics company, has raised US$61.5 million in Series A mezzanine financing. BDC Capital and Lumira Capital led the round with participation from other investors that included Eli Lilly and Co, Celgene, CTI Life Sciences Fund, the Fonds de solidarité FTQ, Perceptive Advisors, Teralys Capital, Northleaf Venture Catalyst Fund, Brace Pharma Capital and Merlin Nexus. With the round, Dion Madsen, a senior managing partner at BDC Capital, will join Zymeworks’ board of directors, while Dr. Daniel Hétu, a managing director at Lumira Capital, will become an observer. The round's proceeds will support clinical development of Zymeworks' lead therapeutic candidates.
4 min read · 08 January 2016
Canadian equity issues reached a six-year high in 2015 with a flurry of energy-sector deals and a few large transactions, Reuters reported, citing data released by Thomson Reuters. The 13 percent increase to $42.6 billion came despite a slowdown in deal activity in the latter part of the year. Initial public offerings recorded their strongest year since 2010.
2 min read · 07 January 2016
Canadian department store operator Hudson's Bay Co (TSX: HBC) has agreed to acquire Gilt Groupe Holdings Inc, an online shopping destination based in New York. HBC agreed to pay US$250 million in cash in a deal that is expected to close by February 1st. The acquisition is expected to contribute about US$500 million to HBC’s total 2016 sales and provide opportunities for the company to accelerate the growth of its digital platform. Founded in 2007, Gilt has raised US$271 million in venture capital funding, according to Thomson Reuters' data. Its investors include General Atlantic, Goldman Sachs, NEA and SoftBank. HBC has been backed by NRDC Equity Partners since 2008.
7 min read · 07 January 2016
Luma has acquired Nodal Industries, an Internet of Things security startup based in Mountain View, California. No financial terms were released. Atlanta, Georgia-based Luma said it plans to integrate Nodal's technology into its intelligent WIFI system, which is designed to bring speed, safety and security to the home WiFi network. Luma was launched in late 2015 with venture capital investment provided by several firms, including Canada's Relay Ventures and Silcon Valley's Felicis Ventures. With the deal, 500 Startups, which previously backed Nodal, becomes a Luma investor.
4 min read · 07 January 2016
A slew of major bets outside Canada by some of the country's top pension funds, banks, investment management firms and insurers propelled Canadian deal activity to its second-highest level ever in 2015, Reuters reported. Thomson Reuters data showed US$278.69 billion of activity involving Canadian entities in 2015, up 37 percent from a year ago, and lagging only a pre-crisis high hit in 2007.
2 min read · 07 January 2016
Investors in Cleantech Capital Inc (TSX-V: YES.P) will vote on its proposed merger with CHAR Technologies Inc, a Mississauga, Ontario-based renewable energy platform, on January 11th. If approved, the previously announced deal will make CHAR eligible for a commitment from Sustainable Development Technology Canada and give it $950,000 in investment. It will also result in a private placement offering of $2.5 million. Andrew White, president and CEO of CHAR, said the funding will bring the company into full commercial production, "allowing us to rapidly penetrate the growing $2 billion renewable natural gas desulfurization market.”
2 min read · 06 January 2016
Lendful, a Vancouver-based lending technology startup, has secured $15 million in funding from Alterna Bank, a subsidiary of Canadian credit union Alterna Savings. Founded early last year by CEO Alex Benjamin, Director Mike Benna and Head of Credit John van Oosterhout, Lendful is an online lending marketplace that provides Canadians with up to $35,000 in loans at interest rates that can save borrowers as much as 30 per cent when refinancing. Since approving its first loan last September, Lendful has seen $20 million in loan applications, the company reported. It is also backed by Stanley Park Ventures and Ferst Capital Partners.
3 min read · 06 January 2016
The Canadian government has unveiled a new $50 million program to help Canadian small and medium-sized enterprises take advantage of global export opportunities. The program, CanExport, will provide technology and traditional small businesses with matching contributions of between $10,000 and $100,000 to assist with export development costs. Eligible companies must have fewer than 250 employees and annual revenue in Canada of between $200,000 and $50 million.
3 min read · 05 January 2016
Canadian growth equity firm XPND Capital has hired Eric Albert as its vice-president, investments, effective immediately. Albert, a business executive and investor, most recently worked as executive vice president at Stingray Digital Group Inc, a Canadian multi-platform music service provider that went public last June. In his new role at XPND, Albert will participate in all aspects of investment activity and help support companies entering the portfolio. Montréal-based XPND is currently marketing its second fund, XPNDCroissance Fund, which has so far raised $52 million of its $70 million target.
3 min read · 05 January 2016
