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Nesco Holdings to Acquire Custom Truck One Source and Create Leading Specialty Rental Equipment Company in Partnership with Platinum Equity

Platinum

Press Release · December 03, 2020

Transformative transaction resulting in greater scale and enhanced depth and breadth of products and services to better serve highly attractive infrastructure-related end-market customers

Platinum Equity, the premier financial sponsor in the specialty rental equipment industry, has committed to invest over $850 million in Nesco and will hold a majority interest in the combined company

Nesco lead investors, Energy Capital Partners and Capitol Investment, and existing CTOS lead investor, Blackstone, to remain ongoing shareholders in partnership with Platinum Equity

Combination significantly reduces leverage, includes material synergies and substantially enhances both corporate and public market liquidity

Fort Wayne, Indiana – December 3, 2020 – Nesco Holdings, Inc. (NYSE: NSCO, “Nesco” or the “Company”) today announced it has entered into a definitive agreement to acquire Custom Truck One Source (“CTOS”) for a purchase price of $1.475 billion. Nesco and CTOS are leading providers of specialized truck and heavy equipment solutions including rental, sales and aftermarket parts and service.

The combination will create a leading, one-stop-shop provider of specialty rental equipment serving highly attractive and growing infrastructure end-markets, including transmission and distribution (“T&D”), the 5G revolution build-out and critical rail and other national infrastructure initiatives. With complementary business lines, customer bases and capabilities, the combination is expected to yield significant benefits from increased scale, breadth of product and service offerings and expanded geographic coverage. Following closing, the combined company will have a more attractive financial profile with significantly reduced leverage and enhanced liquidity providing flexibility to address anticipated demand in the large and growing addressable market in which it operates.

In connection with the transaction, an affiliate of Platinum Equity, LLC (“Platinum”) has committed to invest over $850 million into Nesco in exchange for newly issued common stock at a price of $5.00 per share. In addition, existing CTOS shareholders, including certain funds managed by The Blackstone Group, Inc. (“Blackstone”), in its capacity as the current majority owner of CTOS, and certain members of the CTOS management team, are expected to invest approximately $100 million into Nesco in exchange for newly issued common stock also at the same price as Platinum. Energy Capital Partners (“ECP”) and Capitol Investment (“Capitol”), who together currently own ~70% of Nesco’s outstanding common stock, will retain their entire ownership positions in Nesco and have entered into voting agreements in support of the transaction. Subject to closing mechanics and an additional equity investment of up to $200 million, upon closing, Platinum is expected to own approximately 57% of Nesco’s common stock, with existing CTOS shareholders owning approximately 7%, ECP owning approximately 10% and Capitol owning approximately 3%. The additional equity investment of up to $200 million is targeted to be raised between signing and closing with a Platinum backstop for $100 million.

There will be approximately 259 million shares outstanding at closing assuming the full $200 million of additional equity is raised.  The transaction is anticipated to also be financed with a new $750 million ABL, of which approximately $400 million will be drawn at closing, and $900 million of high yield notes.  Pro forma net debt at closing is projected to be approximately $1.3 billion.

“Since Capitol’s investment in Nesco last year, our number one strategic priority has been to find a way to bring these two companies together, given the significant value inherent in the combination. With enhanced scale, a broader set of capabilities and vastly improved financial flexibility, we believe the new company will be distinctively well-positioned to take advantage of the anticipated growth in critical U.S. infrastructure efforts in energy, telecom and rail over the near term and beyond,” said Mark Ein, Chairman & CEO of Capitol and Vice Chairman of Nesco. “We are very pleased to partner with Platinum given its deep knowledge and strong track record in the equipment rental industry, as well as the existing CTOS shareholders led by Blackstone. Together with Platinum and our other co-investors and the combined company’s Board and management team, we look forward to capturing the meaningful upside opportunities that lie ahead.”

“This is a powerful team of investors coming together to create value,” said Tom Gores, Chairman and CEO of Platinum Equity. “We will deploy our industry knowledge and global operating expertise to maximize the potential of this investment.”

Platinum Equity was previously the majority owner of Nesco from 2011 to 2014, and has been a long-time, successful investor in a wide range of specialty rental businesses.

“This is a powerful team of investors coming together to create value,” said Tom Gores, Chairman and CEO of Platinum Equity. “We will deploy our industry knowledge and global operating expertise to maximize the potential of this investment.”

“We know these companies and the industry extremely well and we have a well-defined playbook for creating value in this space,” said Louis Samson, Partner at Platinum Equity. “We also have a deep bench of operations professionals specialized in merger integration and business transformation who will help bring Nesco and CTOS together, building on the best attributes of each. We expect the combination will create a compelling industrial growth company with strong fundamentals and multiple ways to drive EBITDA organically or through additional M&A.”

“We are excited to bring together our complementary companies to provide a full range of solutions to our customers,” said Fred Ross, Chief Executive Officer of CTOS. “I want to thank our dedicated employees for all that they do each day. Looking ahead, as a combined company, we will be very well positioned to capitalize on a broad range of growth opportunities and better serve our customers’ specialty rental equipment needs on a national basis. We look forward to working together with the Nesco team to realize substantial synergies that will create meaningful value for all our stakeholders.”

John-Paul (JP) Munfa, Managing Director at Blackstone, added, “We at Blackstone are proud to have played a role in the establishment of CTOS, in partnership with Fred Ross and other CTOS shareholders, and have seen the company more than double in size during our ownership. We believe the additional scale and public market access provided by the transaction are the next logical step in the company’s evolution, and we are pleased to invest in a transaction carrying significant commercial benefits for the company’s customers, in partnership with Platinum, Capitol, ECP and Nesco’s existing shareholders.”

“This combination will create new opportunities for our company, our employees and the customers we serve,” said Lee Jacobson, Chief Executive Officer of Nesco. “Nesco and CTOS are a perfect fit and together will be well positioned to pursue numerous opportunities in the rapidly growing specialty rental segment. We couldn’t have reached this milestone without the hard work of our team, and we look forward to working together with CTOS to ensure a seamless transition.”

Strategic Combination Creates a Compelling Industrial Growth Company

  • Enhanced value proposition to customers through “one-stop-shop” national platform. The combined company will offer customers a full suite of solutions across the specialty rental equipment value chain, including equipment rental, new sales, used sales, aftermarket parts and service and retail parts, tools and accessories. Together, the combined company will operate on a national scale with over 1,800 employees, 46 company-operated locations and a rental fleet that will be nearly double in size with almost 9,000 units and more than $1.3 billion in combined original equipment cost (“OEC”).
  • Favorable exposure to highly attractive end-markets with strong fundamentals. The combined company’s core end-markets will include T&D, telecom, rail and infrastructure, all of which benefit from strong secular growth and macro mega trends, as well as limited downside cyclicality. The combined company’s increased scale and national presence will provide significant opportunities to further penetrate new and existing customers across geographies and end-markets.
  • Integrated platform with scale and differentiated offerings. The combination will create a unique business model that should drive a better customer experience and a significant increase in the number and breadth of rental assets available. With a substantially increased rental fleet, scale-enabled purchasing benefits, maximum production and customization flexibility and a well-established new and used sales business, the new company will be better positioned to serve customers and win business.
  • Significant anticipated cost synergies with additional revenue upside opportunities. Nesco and CTOS expect to achieve approximately $50 million in run-rate annual cost synergies within two years of closing. Cost savings are expected to be realized through back office consolidation, procurement and SG&A efficiencies and service and production optimization. The combined company also expects additional upside opportunities from identified revenue synergies via expanded service offerings and cross-selling opportunities and fleet synergies.
  • Compelling financial profile with strong momentum and ample flexibility. The combined company expects to deliver pro forma 2020 adjusted EBITDA of approximately $337 million including run-rate cost synergies and pro forma 2021 adjusted EBITDA of $380 million to $400 million including run-rate cost synergies, as well as meaningful free cash flow as core end-market activity continues to grow. At closing, the combined company expects to benefit from more than $300 million in liquidity and a reduction in net leverage from 6.3x to 3.9x, based on last twelve months ended September 30, 2020 adjusted EBITDA including run-rate cost synergies.

Leadership and Headquarters

At closing, the Nesco Board of Directors will be reconstituted such that Blackstone, ECP and Capitol each retain one board seat and Platinum holds majority voting power of the Board. Together, the parties will work to drive value for all shareholders.

Mr. Ross is expected to serve as CEO of the combined business. The combined company will be headquartered at the CTOS campus in Kansas City with significant operations maintained in Indiana. Additional details, including plans for integrating the respective brands, will be addressed post close by a transition team comprising representatives from each of the companies.

Approvals

The transaction has been unanimously approved by the Nesco Board of Directors and is expected to close in the first quarter of 2021, subject to shareholder approval and other customary conditions. ECP and Capitol have entered into voting agreements in support of the transaction.

Advisors

J.P. Morgan Securities LLC is serving as financial advisor to Nesco and Latham & Watkins LLP is serving as legal counsel. Citi is serving as financial advisor to CTOS and Kirkland & Ellis LLP is serving as legal counsel.

Debt financing commitments have been obtained by Bank of America, who will be leading the financing.
Hughes Hubbard & Reed LLP is serving as legal counsel to Platinum.

Conference Call and Webcast

Representatives of Nesco, CTOS, Capitol and Platinum will host a conference call today, December 3, 2020, at 8:30 a.m. ET to discuss the transaction. The conference call can be accessed by dialing +1 877-524-8416 (U.S. and Canada only) or +1 412-902-1028.

A live webcast of the conference call will be available on the investor relations section of Nesco’s website at https://investors.nescospecialty.com/events-and-presentations/default.aspx#upcoming-events.

ABOUT NESCO

Nesco is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America. Nesco offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets including electric lines, telecommunications networks and rail systems. Nesco’s coast-to-coast rental fleet of more than 4,000 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. For more information, please visit investors.nescospecialty.com.

ABOUT CUSTOM TRUCK ONE SOURCE

CTOS is a leading provider of specialized truck and heavy equipment solutions to the utility, telecommunications, rail and infrastructure markets in North America. CTOS solutions include rentals, sales, aftermarket parts and service, equipment production, manufacturing, financing solutions, and asset disposal. With vast equipment breadth, CTOS’ team of experts service its customers across an integrated network of 26 locations across North America. For more information, please visit www.customtruck.com.
Additional Information About the Acquisition and Where to Find It
This communication is being made in respect of the proposed acquisition of CTOS by Nesco. A special meeting of the stockholders of Nesco will be announced as promptly as practicable to seek stockholder approval in connection with the proposed acquisition. Nesco expects to file with the Securities and Exchange Commission (“SEC”) a proxy statement and other relevant documents in connection with the proposed acquisition. The definitive proxy statement will be sent or given to the stockholders of Nesco and will contain important information about the proposed transaction and related matters. INVESTORS AND STOCKHOLDERS OF NESCO ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NESCO, CTOS AND THE ACQUISITION. Investors may obtain a free copy of these materials (when they are available) and other documents filed by Nesco with the SEC at the SEC’s website at www.sec.gov, at Nesco’s website at www.nescospecialty.com or by sending a written request to Nesco Holdings, Inc., 6714 Pointe Inverness Way, Suite 220, Fort Wayne, Indiana 46804, Attention: Chief Financial Officer and Secretary.
Participants in the Solicitation
Nesco and its directors, executive officers and certain other members of management and employees may be deemed to be participants in soliciting proxies from its stockholders in connection with the acquisition.  Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of Nesco’s stockholders in connection with the acquisition will be set forth in Nesco’s definitive proxy statement for its special stockholder meeting. Additional information regarding these individuals and any direct or indirect interests they may have in the acquisition will be set forth in the definitive proxy statement when it is filed with the SEC in connection with the acquisition. You can find information about Nesco’s directors and executive officers in Nesco’s filings with the SEC, including Nesco’s definitive proxy statement for its 2020 Annual Meeting of Stockholders, which was filed with the SEC on May 1, 2020.
Forward-Looking Statements
Certain statements contained in this communication may be considered forward-looking statements within the meaning of U.S. securities laws, including section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the proposed transaction and the ability to consummate the proposed transaction. When used in this communication, the words “potential,” “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Nesco’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the ability to consummate the acquisition of CTOS and to integrate the acquisition into the Nesco business; failure to obtain necessary stockholder and regulatory approvals or to satisfy any of the other conditions related to the acquisition of CTOS; the ability to realize expected synergies and the timing for any such realization; projected financial results for Nesco and CTOS, including on a combined basis; potential litigation associated with the acquisition of CTOS; the potential impact of the announcement of the acquisition of CTOS on Nesco’s or CTOS’s relationships, including with suppliers, customers, employees and regulators; the impact of the COVID-19 pandemic on Nesco’s or CTOS’s business operations, as well as the overall economy; Nesco’s ability to execute on its plans to develop and market new products and the timing of these development programs; Nesco’s estimates of the size of the markets for its solutions; the rate and degree of market acceptance of Nesco’s solutions; the success of other competing technologies that may become available; Nesco’s ability to identify and integrate acquisitions, including the acquisition of truck utilities; the performance and security of Nesco’s services; potential litigation involving Nesco; and general economic and market conditions impacting demand for Nesco’s services. For a more complete description of these and other possible risks and uncertainties, please refer to Nesco’s annual report on form 10-K filed with the securities and exchange commission on March 13, 2020 and quarterly report on form 10-Q filed with the securities and exchange commission on May 7, 2020, as well as to Nesco’s subsequent filings with the SEC. Should one or more of these material risks occur, or should the underlying assumptions change or prove incorrect, Nesco’s actual results, performance, achievements or plans could differ materially from those expressed or implied in any forward-looking statement. The forward-looking statements contained herein speak only as of the date hereof, and Nesco undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
NESCO INVESTOR CONTACT

Josh Boone, CFO
(800) 252-0043
investors@nescospecialty.com

PLATINUM INVESTOR CONTACT

Dan Whelan
Principal, Platinum Equity
dwhelan@platinumequity.com

MEDIA CONTACT

Joele Frank, Wilkinson Brimmer Katcher
Jim Golden / Tim Lynch
212-355-4449

Investor Relations
and Media Contacts:

Mark Barnhill
Partner
+1 310.228.9514 E-mail Mark

Dan Whelan
Principal
+1 310.282.9202 E-mail Dan

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The Real Brokerage Announces Closing of US $20 Million Strategic Investment by Insight Partners

Insight Partners

TORONTO and NEW YORK, Dec. 3, 2020 /PRNewswire/ — The Real Brokerage Inc. (TSXV: REAX) (OTCQX: REAXF) (“Real”) is pleased to announce today the closing of a US $20 million (approximately CDN $26.28 million) equity investment (the “Insight Investment”) by Insight Partners (“Insight Funds” or the “Investors”) through the purchase of preferred equity units (the “Preferred Units”) issued by a newly-formed U.S. subsidiary of Real, REAL PIPE LLC (“REAL PIPE”), which Preferred Units may be exchanged for common shares of the Company (the ” Common Shares”).

On closing, REAL PIPE issued to the Investors a total of 17,286,842 of the Preferred Units at a price of CDN $1.52 per Preferred Unit (along with the Warrants issued by Real described below) for aggregate gross proceeds of US $20 million. The Preferred Units may be exchanged, at any time at the Investors’ option, and at the option of Real on the earlier of: (i) the listing the Common Shares on a nationally recognized stock exchange in the United States (e.g. NASDAQ or NYSE); (ii) Real’ s market capitalization equaling or exceeding US $500 million for a 30-consecutive trading day period; or (iii) immediately prior to a transaction which Real is acquired by a third party on an arms’ length basis (each, a “Forced Exchange Event”), into common shares of Real (“Exchange Shares”) on a one-for-one basis (as may be adjusted from time to time in accordance with the terms of the limited liability company agreement of REAL PIPE). On an as-exchanged basis, the Insight Funds’ holdings of Exchange Shares and Warrant Shares (as defined below) will represent approximately 19.39% of the outstanding Common Shares on a non-diluted basis and 17.94% of the outstanding Common Shares on a fully diluted basis (including in the denominator Common Shares issuable on the exercise of Real stock options and restricted share units currently issued under Real’s stock option plan and restricted share unit plans (respectively), the Warrant Shares and the Exchange Shares). The exchange price of the Preferred Units will be subject to adjustment from time to time in accordance with the terms of the limited liability company agreement of REAL PIPE. The Exchange Shares are free of resale restrictions in Canada but are subject to a four-month hold period imposed by the TSX Venture Exchange (TSXV) in accordance with the policies of the TSXV (the “Exchange Hold Period”).

On closing, in addition to the Preferred Units, Real issued to the Investors a total of 17,286,842 Common Share purchase warrants (each a “Warrant”). Each Warrant will be exercisable by the Investors into one Common Share (each a “Warrant Share”) at a price of CDN $1.90. The Warrants will expire on the date that is five (5) years from the closing, subject to acceleration of the expiry date to the date of a Forced Exchange Event. The Warrants and the Warrant Shares are free of resale restrictions in Canada and are not subject to an Exchange Hold Period.

In connection with the closing of the transaction, Real has increased the size of its board of directors from four (4) directors to five (5) directors and appointed AJ Malhotra, a Vice President of Insight Partners, to the board of directors of Real.

Real and REAL PIPE have also entered into an investor rights agreement with the Investors providing for, among other things, participation rights, certain standstill and transfer restrictions and certain director nomination rights. Real has entered into a registration rights agreement with the Investors providing for, among other things, customary registration rights. Real guaranteed, absolutely and unconditionally, REAL PIPE’s obligations with respect to the Preferred Units (but postponed and subordinated in right of payment to the prior payment of senior indebtedness) pursuant to the terms of a subordinated guarantee agreement entered into with the Investors on closing.

Additional information regarding the Insight Investment and the terms of the Preferred Units and Insight Investment will be included in a material change report to be filed by Real on www.sedar.com, which you are encouraged to read in its entirety This press release is only a summary of certain principal terms of the Insight Investment and is qualified in its entirety by reference to the more detailed information contained in the material change report.

With the additional funding, Real plans to accelerate development of its tech-powered brokerage services for real estate agents and their clients, including building additional services into its turnkey mobile app and opening more geographies.

“We are proud and excited to welcome Insight Partners to Real. Insight has an excellent track record of identifying future market leaders and helping some of the world’s greatest tech companies in their journeys of transforming industries,” said Tamir Poleg, co-founder and CEO of Real. “Insight’s Onsite ScaleUp engine will help us provide unparalleled experience to real estate agents and their clients and expand into new markets. Today is an important milestone for the future of real estate agents across the country.”

“Real leverages best-in-class technology to help real estate agents earn more and build financial security,” said AJ Malhotra, Vice President at Insight Partners. “Our experience and track record in scaling software companies combined with the Real’s tech-driven platform will form a valuable partnership in helping the company continue to expand its agent network, grow its geographic footprint in the U.S., and add additional services to its offering.”

Transaction Advisors

Gowling WLG (Canada) LLP acted as Real’s legal advisor, with U.S. legal support provided by DLA Piper LLP (US). Willkie Farr & Gallagher LLP and Stikeman Elliott LLP acted as legal advisors to Insight Partners.

Early Warning Disclosure

Real’s head office is located at 133 Richmond Street West, Suite 302, Toronto, Ontario, M5H 2L3.

The following private equity fund affiliates of Insight Venture Management, LLC acquired the Preferred Units and the Warrants (and reference to Insight Funds in this section “Early Warning Disclosure” means the following funds): Insight Partners XI, L.P.; Insight Partners (Cayman) XI, L.P.; Insight Partners XI (Co-Investors), L.P.; Insight Partners XI (Co-Investors) (B), L.P.; Insight Partners (Delaware) XI, L.P.; and Insight Partners (EU) XI, S.C.Sp. The address of Insight Funds is c/o Insight Partners, 1114 Avenue of the Americas, Floor 36, New York, NY, 10036.

Insight Funds acquired the Preferred Units and the Warrants for the consideration described in this press release pursuant to a securities subscription agreement entered into on December 2, 2020 among the Insight Funds, Real and REAL PIPE. Immediately prior to the Insight Investment, the Insight Funds and their affiliates had no ownership or control over securities in the capital of Real. Insight Funds will hold the Preferred Shares, the Warrants, and any Common Shares issuable upon the exchange or the exercise of the Preferred Shares or the Warrants, respectively, for investment purposes.

This press release is issued under the early warning provisions of the Canadian securities legislation. An early warning report with additional information in respect of the foregoing matters will be filed and made available www.sedar.com under Real’s profile. To obtain copies of the early warning report, please contact Insight Partners at the details below.

Contact:
Andrew Prodromos, Insight Partners, (212)-931-5239

About Insight

Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit insightpartners.com or follow Insight on Twitter @insightpartners.

About Real

Real (www.joinreal.com) is a technology-powered real estate brokerage in 21 U.S. states and the District of Columbia. Real is on a mission to make agents’ lives better, creating financial opportunities for agents through higher commission splits, best-in-class technology, revenue sharing and equity incentives.

Contact Information:

For more details, please contact:
The Real Brokerage Inc.
Lynda Radosevich
lynda@joinreal.com
917-922-7020

No Offer or Solicitation

The offer and sale of the securities described herein was made in a transaction not involving a public offering and has not been registered under the U.S. Securities Act of 1933, as amended, any state securities laws or the securities laws of any other jurisdiction. Accordingly, the securities may not be reoffered or resold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Forward-looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as ” seek”, ” anticipate”, ” believe”, ” plan”, ” estimate”, ” expect”, ” likely” and ” intend” and statements that an event or result ” may”, ” will”, ” should”, ” could” or ” might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, information relating to a potential Forced Exchange Event.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQX has neither approved nor disapproved the contents of this press release.

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Leading Construction Tech Company Versatile Secures $20 Million Series A Investment

Insight Partners

Versatile’s AI and IoT platform, CraneView®, increases efficiency, safety and cost-savings on any construction site

San Francisco, CA (December 3, 2020) — Versatile®, a company using machine learning and AI to optimize construction processes, today announced that it has raised $20 million in Series A funding. The round was led by Insight Partners and Entree Capital, and joined by previous investors Robert Bosch Venture Capital GmbH, Root Ventures, Conductive Ventures, and veteran construction technology entrepreneurs Leigh Jasper and Rob Phillpot. The new funding will allow Versatile to continue to rapidly scale its award-winning product across the $10 trillion global construction industry.

“You can only improve what you can measure, and at Versatile we are just scratching the surface of what we can do to create value for our users and use data to turn jobsites into controlled manufacturing with fast feedback loops,” said Meirav Oren, co-founder and CEO of Versatile. “We are thrilled to receive continued support from top-tier investors. This accomplishment is a testament to our industry, and I can’t wait to serve more teams, helping to make the professionals of our industry even better at what they are already great at.”

Leveraging AI and IoT, Versatile’s CraneView® captures and analyzes thousands of data points to deliver real-time insights on jobsite performance and streamline decision-making. Mounted under the hook of any crane, this first-of-its-kind technology offers unparalleled production data on any jobsite — including information on materials, redundancies, construction progress and crane utilization — and empowers project teams to work safer, faster, and enable a manufacturing approach to the way we build. The new funding will accelerate growth and availability of the solution, as well as the development of new, AI-based capabilities to create more connected insights for a variety of users.

“Investing in Versatile was an easy decision given how naturally their product fits the job site workflows, its high ROI, and their customer feedback about the value and experience of utilizing the CraneView solution,” said Nikitas Koutoupes, Managing Director at Insight Partners, who is also joining Versatile’s board.

Construction accounts for 13% of global GDP and is responsible for the buildings, roads, and infrastructure that power the ways people live, work and travel. A $265 billion annual profit pool awaits disruptors according to McKinsey & Company, and demand for construction technology solutions that increase efficiencies rapidly grew in 2020. Versatile provides a powerful, non-intrusive solution for the construction market, transforming traditionally time-consuming, manual processes through in-depth understanding of the efficiencies and opportunities to boost productivity and safety of any project. CraneView® is being used by top General Contractors on projects across the U.S. and Canada.

About Versatile

Headquartered in Los Altos, CA, Versatile creates technology that gives construction professionals unmatched visibility into their production rates.​ By delivering the right data to the right people at the right time while naturally fitting existing processes, a fragmented industry becomes a controllable manufacturing process. The result? Increased productivity, predictability and safety with the insights needed to manage and bid future projects more competitively.

Want to learn more? Visit: https://www.versatile.ai, follow us on Twitter @versatileai and LinkedIn or email us at letstalk@versatile.ai.

About Insight Partners

Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.

 

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Baird Capital Invests in HSP Group

Baird Capital

December 3, 2020 – Baird Capital announced today that it recently invested in HSP Group, a technology-enabled business services firm focused on helping US and European companies expand globally and manage their international operations.HSP Group Logo

HSP Group provides headquarters-based finance, tax, legal, and HR personnel with a simplified, turnkey approach to ensure efficient operations, full compliance with local regulations, and needed consistency across each geography.

“We are extremely pleased to help Larry Harding and the founding team at HSP Group launch their operations, and accelerate their expansion and service offerings,” said Benedict Rocchio, Partner with Baird Capital. “We witnessed first-hand the growth of one of our former portfolio companies under Larry’s leadership, and the opportunity to partner again is exciting for our firm.”

Larry Harding, Founder & CEO of HSP Group said, “Baird really knows our market, and our relationship is built on a solid foundation of trust. I couldn’t be happier to be working with them as we focus on making HSP Group the client-preferred provider of global expansion services.”

HSP Group focuses on offering the following technology-enabled services to support the international operations of its clients:

  • Global support services, including legal entity management solutions, statutory accounting & international tax compliance, employer of record (EoR) services, global payroll processing, and HR administration.
  • Consulting solutions, including specialized services like international tax advice, ad hoc and special project assistance, as-needed HR support, global mobility, VAT optimization, legal entity setup and/or rationalization, and project management (including implementation / onboarding / transformation services).
  • M&A transaction services, including International Readiness support, and other solutions helping ensure buy-side success with the more challenging multinational aspects of a carve-out acquisition.

For more information on Baird Capital’s investment strategy, click here.

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DOCAUTHORITY raises additional $3.25mm to save the world and its unstructured data files AXA Venture Partners leads Financing Round to Expand Growth

AXA

DocAuthority, the data governance platform built for both technical teams and business users, today announced that it has raised a $3.25 million Series A-1 funding round led by AXA Venture Partners. Returning investors ff Venture Capital and 2B Angels, along with UpVentures Capital, also invested. Manish Agarwal, General Partner-New York at AXA Venture Partners, will join the Board of Directors. The funds will be used to support the company’s growth within existing markets and expansion into new ones.

DocAuthority’s software is central to an enterprise’s data governance program, providing its customers with the industry’s most advanced way to manage their unstructured data and a clear line of sight to their regulated or commercially-sensitive files. Knowing where a company’s files are and who has access to them is the first step in reducing risk and increasing security. “You cannot protect what you cannot find,” says Chief Revenue Officer Colin Woodland. “Especially because of today’s distributed workforces, our customers use our software to identify vulnerabilities to malicious actors. No one else can work with unstructured data as effectively and efficiently as can DocAuthority, and our customers find great value in the software. We also find that most of them are able to reduce their data storage costs by identifying and eliminating duplicate and obsolete files. We think of ourselves as a profit center for our customers.”

An ever-expanding panoply of privacy laws, including GDPR (Europe), CCPA (California), POPI-A (South Africa-which includes criminal penalties for management in certain cases) and LGPD (Brazil) are focusing companies’ attention on compliance to satisfy their customers’ demands around data security and to avoid fines and possible criminal penalties. “We are proud to be our customers’ first line of defense in their overall strategy to live up to customer and legal demands,” says Steve Abbott, DocAuthority’s CEO. “We truly look to form a partnership with our customers so we can better understand their goals.”
Abbott continued, “that is why we are proud to have AXA Venture Partners as an investor in that vision. They understand the commercial needs created by today’s regulatory environment and their guidance will allow us to leapfrog our competitors as we address real world business demands.”
According to Agarwal, “we are thrilled to be joining the DocAuthority team. Their product is not a ‘nice-to-have,’ it is a ‘need-to-have,’ and their rapid growth and marquis customers attest to the high quality services the company offers. With DocAuthority’s focus on protecting its customers from attack, complying with government mandates and saving data storage costs, we are glad to work with Steve and his team to help grow the organization.”

About DocAuthority
DocAuthority was founded in 2015 and is headquartered in Ra’anana, Israel, with offices in London and Atlanta, Georgia. Focusing on the GRC space, DocAuthority uses proven and performance-optimized algorithms to automatically create categories of information from unstructured data within an enterprise’s files. This approach saves time, effort and money when managing their data. Whether it is managing retention periods, controlling access to personal data, the classification of sensitive data or another information governance task, DocAuthority ensures an economical and efficient process.

About AXA Venture Partners
AXA Venture Partners (AVP) is a global venture capital firm investing in high-growth, technology enabled companies. AVP has built, in less than five years, a unique investment platform specialized in tech investments with $800 million of assets under management through three pillars of investment expertise: early stage, growth stage, and fund of funds. To date, AVP has invested in more than 45 companies and more than 20 funds. The AVP team operates globally with offices in San Francisco, New York, London, Paris, and Hong Kong. Beyond investments, AVP provides unique access to business development opportunities helping portfolio companies to scale globally and accelerate their growth. More details here: www.axavp.com
About ff Venture Capital
ff Venture Capital (ffVC) is a seed and early-stage venture capital firm based in New York City. Founded in 2008, the firm invests, often as the lead investor, in growing technology and technology-enabled companies with the potential to become high-value, market-moving businesses across emerging industries, including artificial intelligence, robotics, cybersecurity, drones, enterprise software, and FinTech. More details here: www.ffvc.com

About 2B Angels
2B Angels is a leading Israel-based venture capital fund, focused on growing early-stage ventures with deep technology into category-leading companies. Founded in 2009, 2B Angels’ approach is centered around teaming up with exceptional entrepreneurs, supporting them and leveraging the team’s industry experience. Over the last decade, 2B Angels has been one of Israel’s most active venture capital funds with over 60 investments in a variety of sectors, including Cyber-Security, FinTech (specific use cases), AI & ML, Automotive/Mobility, HR Tech & Education Technology, among others. The firm in based in Tel Aviv. More details here: www.2b-angels.com.

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Why We Invested in Arctic Wolf – Ending Cyber Risk

Adams Street

Dec 03, 2020 Insights

Adams Street is excited to announce our follow-on investment in Arctic Wolf, a SaaS-based security operations platform that allows businesses of all sizes to dramatically improve their security posture without adding costly cybersecurity professionals.

Massive Market Need

Ending cyber risk is an audacious goal. The velocity at which large-scale cybersecurity breaches garner news headlines is accelerating. Especially in recent months, cybercrime has been up as businesses are increasingly vulnerable with employees working remotely. The common solution has been to deploy new cybersecurity tools and see what sticks. After all, there is no shortage of products in the market. This strategy, however, typically creates new challenges for security teams: excessive alerting, complexity of managing myriad products, and difficulty in hiring security professionals to actually run the show. As Arctic Wolf CEO, Brian NeSmith, observes, “organizations are realizing that they don’t have a tools problem, but an operational one”.

Organizations are realizing that they don’t have a tools problem, but an operational one.

— Brian NeSmith, CEO of Arctic Wolf

The major challenge of implementing a comprehensive security program is operationalizing disparate sources of information and responding appropriately to security threats. At the center of this challenge is an organization’s security operations center (SOC), which refers to the people, processes, and technologies that a company puts in place to detect and respond to cybersecurity threats. SOCs are critical to modern security architectures yet are expensive to configure, complicated to operate, and require a significant human capital investment. This challenge has given rise to a category of businesses offering Managed Detection and Response (MDR) services or a “SOC-as-a-Service”, which allow organizations to add 24/7 threat monitoring, detection, and response via a turnkey solution. According to Gartner, 25% of organizations will be using MDR services by 2025.

Superior AI-Based Solution

Arctic Wolf’s cloud-native security operations solution is leading the pack within the MDR space. The platform integrates with a customer’s existing tech stack to collect over 65 billion events daily across cloud, network, and endpoint. Using advanced AI, Arctic Wolf correlates all of these captured events with industry-leading threat intelligence to identify possible behavioral patterns of a cyberattack. From there, it’s time to act. Arctic Wolf has a dedicated “Concierge Team” of security operations specialists that work 24/7 to triage alerts, manage threats, and offer guidance on how a customer can mitigate issues in the future. The product is easy to implement, effective, and can be the difference in preventing a cyber breach. Arctic Wolf continues to innovate and broaden their product offering to include capabilities like risk management and cloud monitoring. The effectiveness of the platform has underpinned tremendous growth for the Company, which saw 106% YoY growth in subscription revenue and 301% YoY growth in the number of customers using multiple solutions.

The effectiveness of the platform has underpinned tremendous growth for the Company, which saw 106% YoY growth in subscription revenue and 301% YoY growth in the number of customers using multiple solutions

Deeply Experienced Management Team

It is rare to meet a cybersecurity executive that brings as much experience and industry vision as NeSmith, CEO and co-founder of Arctic Wolf. Scaling cybersecurity companies is not new to him. Previously, he served as CEO of Blue Coat Systems, a leading provider of content and web security. As CEO, he oversaw Blue Coat’s IPO, acquired 8 companies, and grew the business from $5mm annual revenue to $500mm revenue and 1,300+ employees. Brian has surrounded himself with a team of experienced executives with deep security expertise. The management team brings a wealth of experience from other leading companies such as Cylance, CrowdStrike, Code42, and FireEye. When Adams Street originally invested in Arctic Wolf in 2018, we knew that they were up to something special. NeSmith and team continue to impress with their product vision and execution. If there is any company that can end cyber risk, Adams Street believes that Arctic Wolf stands the best chance.

Important Considerations: This information (the “Paper”) is provided for educational purposes only and is not investment advice or an offer or sale of any security or investment product or investment advice. Offerings are made only pursuant to a private offering memorandum containing important information. Statements in this Paper are made as of the date of this Paper unless stated otherwise, and there is no implication that the information contained herein is correct as of any time subsequent to such date. All information has been obtained from sources believed to be reliable and current, but accuracy cannot be guaranteed. References herein to Adams Street Partners’ portfolio companies are not to be considered a recommendation or solicitation for any such company. Projections or forward-looking statements contained in the Paper are only estimates of future results or events that are based upon assumptions made at the time such projections or statements were developed or made; actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections or forward-looking statements.

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IK portfolio company Klingel medical metal acquires puracon GmbH from SHS, a medical technology investo

ik-investment-partners

SHS Gesellschaft für Beteiligungsmanagement mbH, based in Tübingen, is selling its shares in puracon GmbH to Klingel medical metal GmbH, a portfolio company of IK Investment Partners. With 600 employees, Klingel Group is one of the leading companies in the field of precision machining of high-strength materials such as stainless steel and titanium for the production of medical technology products made of metal. The purchase of puracon allows Klingel to benefit from valuable synergies as contract developer, manufacturer and packer and offer its worldwide medical technology customers a complete range of services based on the “one-stop-shop” principle. This is already the third acquisition for Klingel since IK Investment Partners acquired a stake in 2018.

SHS Gesellschaft für Beteiligungsmanagement mbH, based in Tübingen, has been active as an investor in the field of medical technology and life sciences for more than two decades. This makes SHS one of the most experienced investment companies in this sector currently investing from SHS fund V.

At the end of 2015, SHS took a stake in puracon GmbH based in Rosenheim. As a full-service partner for the medtech industry, puracon offers efficient packaging and validation solutions for medical technology products: primarily implants and instruments. Thus, puracon is part of the validated process chain of implants and the final station before the sterile product is used for patients in the hospital.

Sascha Alilovic, Managing Partner of SHS, says: “With Klingel medical metal, puracon is able to continue to pursue a targeted course of growth. Klingel thinks about the long-term. The company has been in the market since 1986 and is today one of the leading suppliers in its field. Our goal was to support puracon on the road to profitable growth. We’ve achieved this, and now it’s time to ignite the next stage – and Klingel is the perfect partner for this.”

Ralf Petrawitz, Managing Partner and CEO of Klingel, plans to significantly expand the group’s offering for medical technology customers worldwide on the basis of this acquisition. “puracon is a very good addition to an already extensive product range for our demanding customers from the medical technology sector. As a result, we are now able to offer services in the field of validation and packaging within the Klingel Group. These factors enable us to specifically strengthen our competitive position and make us fit for the future.”

Ruth Gessner, Managing Director of puracon, is also pleased with this development: “Together with SHS, we as a puracon team have been able to significantly expand our customer base over the last five years, thereby generating strong growth. With Klingel Group, we will take the next step and achieve synergies that will benefit both our customers and our employees. We look forward to working with them.”

For further questions, please contact:

IK Investment Partners
Charles Barker Communications GmbH
Tobias Eberle
Telefon +49 69 794090 24

Klingel medical metal
Ralf Petrawitz
Telefon +49 7231 6519 0 

SHS Gesellschaft für Beteiligungsmanagement mbH
Regine Hujer
Bismarckstraße 12
72072 Tübingen
Telefon +49 7071/9196-100
tuebingen@shs-capital.eu

About IK Investment Partners

IK Investment Partners (“IK”) is a pan-European private equity firm with a focus on investments in the Nordic regions, the DACH countries, Benelux and France. IK has received more than EUR 13 billion in capital commitments since 1989 and has invested in over 140 companies. IK supports high-growth companies with further potential for international expansion and add-on acquisitions. For more information: www.ikinvest.com

About Klingel medical metal:

Klingel has been a leading European company in the field of precision technology for more than 30 years with a strategic focus on the medical technology sector. With more than 600 employees, Klingel focuses on the processing of complex metal components and instruments made of titanium and stainless steel. Klingel provides the highest possible technical quality while maintaining aesthetic precision. For more information: www.klingel-med.de

About SHS Gesellschaft für Beteiligungsmanagement mbH:

SHS Gesellschaft für Beteiligungsmanagement based in Tübingen invests in medical technology and life sciences companies with a focus on expansion financing, changes in the shareholder structure and succession scenarios. SHS acquires both minority and majority stakes. Founded in 1993, the company is an experienced industry investor and supports the growth of its portfolio companies through a network of cooperations. This includes the introduction of new products, dealing with regulatory issues and gaining a foothold in additional markets, among other things. European investors in SHS funds include pension funds, strategic investors, funds of funds, family offices, entrepreneurs and the SHS management team. The company is a registered AIFM and makes equity investment of up to EUR 30 million. Volumes exceeding this limit can be implemented with a network of co-investors. SHS is currently investing from its fifth fund. The fund has received capital commitments of more than EUR 130 million. For more information: http://www.shs-capital.eu

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Fairfax announces sale of Riverstone Europe to CVC Strategic Opportunities II

02 Dec 2020

OMERS has also agreed to sell all of its interests in RiverStone Europe as part of the transaction

Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II. OMERS, the pension plan for Ontario’s municipal employees, has also agreed to sell all of its interests in RiverStone Europe as part of the transaction.

The purchase price to be received by Fairfax on closing of the transaction is approximately US$750 million. Fairfax will also be entitled to receive up to US$235.7 million post-closing under a contingent value instrument. Luke Tanzer will remain the Managing Director of RiverStone Europe and Nick Bentley, the Chief Executive Officer of the RiverStone Group, will remain on the board of RiverStone Europe post-closing.

After closing, RiverStone Europe will also operate under the name RiverStone International and will seek to continue its successful track record of acquisitions and growth led by its existing management team.

“We are very pleased to enter into this transaction with CVC,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “RiverStone Europe is an industry leader in run-off insurance services, and CVC’s scale and vision will give RiverStone Europe, under the continued leadership of Luke and his management team, the opportunity to further grow the business. Nick and Luke are also fully supportive of this transaction, based on their strong beliefs that it was the best way for RiverStone Europe to continue to grow and pursue run-off transactions. We wish Luke and all of the employees at Riverstone Europe much success in the future. Fairfax remains committed to continuing to grow its other European businesses, including its Lloyd’s of London activities.”

“I am extremely happy to partner with CVC in this next chapter of our development,” said Luke Tanzer, Managing Director of RiverStone Europe. “This transaction will provide us with a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market. We look forward to joining the CVC family and benefitting from their deep experience of financial services, global network and long term pool of capital.”

“As one of the largest global consolidators of non-life run-off insurance books, with a leading position in the UK and Lloyd’s market, embedded cash flows and a predictable financial profile, RiverStone Europe is ideally suited to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions,” said Peter Rutland, Managing Partner and Head of Financial Services at CVC. “We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team.”

The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in early 2021.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

CVC is making this acquisition through Strategic Opportunities Fund II, a vehicle designed to invest in high-quality businesses that are suited to longer hold investment horizons.

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PDFTron Acquires PDF Editing and Translation Innovator Iceni Technology

Acquisition Adds EMEA Footprint and 11,000 Global Customers, Deepens PDF Editing and Translation Product Offering

Market-leading provider of document technology solutions for software developers, PDFTron Systems Inc., today announces the acquisition of Norwich, UK-based Iceni Technology Ltd., specialists in PDF editing and translation software and producers of a series of firsts in the field of PDF manipulation.

PDFTron Founder and CTO Ivan Nincic stated, “At PDFTron, we partner with innovative companies that are leaders in their fields and offer superior value propositions to their customers. With Iceni, we’re excited to bring on an incredible team with over 15 years of developer experience innovating PDF editing and automated PDF translation. Both companies stand to benefit from each other’s strengths as we combine our offerings to power the next generation of document processing applications.”

“With PDFTron’s scale and broad platform, we can now provide our 11,000 customers worldwide greater value in terms of access to hundreds of unique PDFTron SDK features, top-quality rendering performance, and market-leading support service and responsiveness,” stated Iceni Co-Founder and Director Simon Crowfoot. “We also see synergies in the document understanding field, where our advanced PDF editing and translation features naturally augment PDFTron’s content extraction, document reflow, form and invoice recognition, and next-gen search capabilities using Deep Learning and AI.”

The Iceni acquisition marks PDFTron’s entry into the European market and builds on recent acquisitions of North American enterprise document software providers ActivePDF and BCL Technologies earlier this year. PDFTron continues to be engaged in a global search for best-in-class technology to add to its growing, end-to-end document SDK platform, including the #1-ranked commercial PDF SDK.

With PDFTron’s planned integration of the trailblazing Iceni Infix PDF Editor and its Infix TransPDF functionality, PDFTron customers can now look forward to giving their users a deep Word processor-style editing experience on PDFs and accurate, push-button translations of PDFs in 60+ languages across all platforms.

About Iceni Technology Ltd.

Formed in 1996 with a background in pre-press, newspapers and PostScript, today, Iceni Technology is an established software development company based in the city of Norwich in the UK. Iceni continues to innovate in translation and web-based PDF interaction, having previously produced a series of firsts in the field of PDF manipulation. Its products on desktop, server and web hosts, including the Infix PDF editor, are translated into most European languages for its over 11,000 professional, corporate, educator, and estate agent customers in 39 different countries. For more information, visit www.iceni.com.

About PDFTron Systems Inc.

Headquartered in Vancouver, BC, PDFTron is a premier global provider of high-performance document processing technology serving customers across a broad spectrum of industries. PDFTron’s market-leading SDK drives digital transformation and powers next generation software applications with dynamic document viewing, annotation, processing, and conversion capabilities, as well as advanced features such as document understanding, data extraction, and redaction. PDFTron technology supports all major platforms and dozens of unique file types, including support for PDF, MS Office, and CAD formats. For more information, visit www.pdftron.com.

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Novacap Acquires Logibec

Novacap

Montreal, December 2, 2020 – Novacap, one of Canada’s leading private equity firms, in partnership with Investissement Québec, today announced that it has acquired Logibec, a Montreal-based healthcare software company. The transaction brings back Logibec to Canadian ownership.

 

« We are grateful for the enthusiastic support of Novacap and its partners in this transaction, which not only brings our company back to Canadian ownership, but also positions us for expansion outside of North America. Our most recent breakthrough in foreign markets confirms that Logibec has invested in the right growth areas such as data management solutions. The Novacap team understands our Canadian heritage and is well positioned to support us in the next phase of our development. »

Marc BrunetCEO, Logibec

« Novacap has always been committed to fostering entrepreneurship and innovation right here in Quebec, and Logibec has epitomized that since inception. Novacap has a long history of successfully partnering with Canadian companies and helping them grow significantly. We are very excited to lead this investment alongside Investissement Québec and management in Logibec, a flagship provider of IT and software solutions to the Canadian healthcare ecosystem and support the company in its international expansion »

Pascal TremblayPresident, CEO and Managing Partner, Novacap

Founded in 1982, Logibec is one of Canada’s largest healthcare technology companies and is entirely dedicated to contributing to the better delivery of patient care and to assisting healthcare managers in their day to day operations through technology.

“We are grateful for the enthusiastic support of Novacap and its partners in this transaction, which not only brings our company back to Canadian ownership, but also positions us for expansion outside of North America,” said Marc Brunet, CEO, Logibec.

“Our most recent breakthrough in foreign markets confirms that Logibec has invested in the right growth areas such as data management solutions. The Novacap team understands our Canadian heritage and is well positioned to support us in the next phase of our development.”

“Novacap has always been committed to fostering entrepreneurship and innovation right here in Quebec, and Logibec has epitomized that since inception,” said Pascal Tremblay, President, CEO and Managing Partner, Novacap. “Novacap has a long history of successfully partnering with Canadian companies and helping them grow significantly. We are very excited to lead this investment alongside Investissement Québec and management in Logibec, a flagship provider of IT and software solutions to the Canadian healthcare ecosystem and support the company in its international expansion.”

“Logibec has a long history of working in collaboration with private equity sponsors, and as their new partners, we are thrilled to support management’s growth initiatives and to contribute improving healthcare by bringing innovative solutions to the market,” said Eric Desrosiers, Senior Partner, Novacap. “Our investor group is committed to providing Logibec all the resources it needs to develop new solutions and expand its footprint in new geographies.”

“The investment that our government is making in Logibec is strategic for Québec’s position in this highly competitive sector. It will enable the company to remain among the leaders in information systems for the health and social services sector. The company will thus be able to focus on developing solutions essential to the quality of care offered to patients, particularly in hospitals,” said Pierre Fitzgibbon, Minister of the Economy and Innovation.

“We’re proud to be involved in this major investment, which is helping to bring Logibec’s ownership back to Québec and consolidate the vitality of our healthcare IT ecosystem. For more than four decades, the company has applied its expertise in our healthcare institutions, standing out because of its leading-edge technologies. Alongside solid financial partners like Novacap, Investissement Québec plans to continue supporting the players and key sectors of our economy in order to spotlight our know-how and grow our investments and exports,” said Guy LeBlanc, President and CEO of Investissement Québec.

Fasken Martineau Dumoulin LLP, Ernst Young LLP, Tectonic Advisory Services Inc., Crosslake Technologies, LLC and National Bank Financial Inc. acted as advisors to Novacap.

Logibec was formerly a portfolio company of GI Partners.

 

About Novacap

Founded in 1981, Novacap is a leading Canadian private equity firm with CA$3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 39 years, Novacap has invested in more than 90 companies and completed more than 140 add-on acquisitions. Novacap has offices in Brossard, Quebec and Toronto, Ontario. For more information, please visit www.novacap.ca.

About Logibec

Headquartered in Montreal, Canada for nearly 40 years, Logibec deploys information systems that span the clinical, operational, and business needs of complex healthcare organizations. Logibec’s clients are also empowered to improve and innovate by utilizing our industry-leading suite of actionable analytics solutions and advisory services.

For more information, visit www.logibec.com.

About Investissement Québec

Investissement Québec’s mission is to play an active role in Québec’s economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists businesses with export activities.

 

For further information: Novacap: Alexandra Troubetzkoy, NOVACAP, +1 450-651-5000 ext.291, atroubetzkoy@novacap.ca

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