Canadian Tech M&A / Fundraising News - Feb 09 2024

Over the past few weeks, we saw several interesting announcements related to M&A deals and fundraising activities. 

M&A highlights 

• London and Marlborough-based HubStar acquired Ottawa-based workplace analytics startup Relogix for an undisclosed amount. The deal aims to combine HubStar's analytics capabilities and deep learning technology with Relogix's analytics platform, Conexus.  Relogix's client base includes major companies like Bloomberg, Motorola, KPMG, and Starbucks.

• Utah-based roofing software company JobNimbus acquired Calgary-based CRM SaaS provider SumoQuote for an undisclosed amount. The acquisition aims to position JobNimbus as the industry leader in sales-centric customer relationship management solutions. While both companies already had integrations between their platforms, the acquisition will lead to the gradual merging of SumoQuote into JobNimbus throughout the year, enhancing the contracting job creation, estimation, and fulfillment experience within the JobNimbus platform.

• Calgary-based electric vehicle (EV) tech company Exro announced its intention to acquire California-based SEA Electric in a CA$332M deal valuing SEA at approximately CA$402M. The merger aims to create an end-to-end solution by combining Exro's energy-efficiency-focused offerings with SEA's propulsion systems. Exro anticipates significant revenue and cost synergies, positioning the merged entity for amplified growth with new partners while strengthening existing relationships. 

• New York / London / Tel Aviv-based technology and sports content company Minute Media acquired Victoria-based media company STN Video for an undisclosed amount. This acquisition is set to enhance Minute Media's capabilities in creating, distributing, and monetizing sports and culture content, incorporating STN Video's extensive library of over 2 million videos. Minute Media, with a claimed reach of 200 million monthly users, envisions the acquisition providing a comprehensive view of the sports industry for its partners and clients. 

• Vancouver-based food delivery platform Fantuan acquired the delivery business of Chicago-based Chowbus for an undisclosed amount. The deal aims to strengthen Fantuan's presence in the US market. Fantuan, often described as the "Uber Eats for Asian foods and deliveries," anticipates broadening its restaurant and user portfolio, enhancing its foothold in the United States. This acquisition follows Fantuan's recent CA$54.3M Series C funding round and aligns with the company's goal to become the overseas version of Beijing-based consumer goods retail giant Meituan.

• Deloitte Canada acquired Toronto-based Flow, a Toronto-based consulting firm specializing in assisting startups with funding sourcing, for an undisclosed amount. Flow, founded in 2006, focuses on helping companies secure funding through avenues such as tax credits, grants, venture capital, and loans. Deloitte plans to leverage Flow's expertise to enhance its ability to support early-stage technology startups in Canada, in addition to Deloitte's other offerings like the VC fund, AI practice, and abundant resources.

Funding highlights

• Toronto-based Wisedocs has raised a CA$12.7M Series A round for its AI-powered medical record review platform. The round was led by Information Venture Partners, with participation from Thomson Reuters Ventures, ManchesterStory, and others. Wisedocs' platform utilizes AI to sort, summarize, and review various medical documents, significantly reducing processing time for insurance companies. The funding will be used to expand the team, enhance the product, and increase the company's sales footprint. 

Other developments

• The Canadian software sector's venture capital funding is returning to pre-2021 levels, signaling a promising phase, according to a report by Inovia Capital. Despite challenges like rising interest rates and declining valuations, emerging managers in the Canadian software market are growing, with a shift predicted from Canadian-led investments to increased international interest. Regional contributions highlight Western Canada and Quebec comprising 48% of total funding since 2019. FinTech, digital health, and "future of work" verticals dominate VC funding, with anticipated growth in mergers and acquisitions for Canadian software companies.

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