Software and Technology Monthly Newsletter - August 2024
In This Edition:
July 2024 In Review
Google Left at the Altar Twice
Financing
Public Market Dashboard 2024
Mergers and Acquisitions
July 2024 in Review
July 3 - Open Text (TSX:OTEX) cut 1,200 jobs as part of a business optimization plan, which is expected to generate about $150MM in annual savings.
July 4 - The Canadian federal government invested $120MM over five years to build a national semiconductor chip network.
July 4 - The federal government authorized the implementation of a 3% digital services tax on large foreign tech companies despite trade retaliation warnings from the U.S., which came into effect June 28.
July 19 - Global cybersecurity firm CrowdStrike’s (NASDAQ:CRWD) Falcon Sensor software experienced issues that resulted in Microsoft Windows crashing worldwide.
July 25 - OpenAI announced its AI-powered search engine prototype, SearchGPT with real-time access to information across the Internet.
Google Left at the Altar Twice
When a two trillion-dollar market cap company seeks to make an acquisition, one would think it would get its way. This was not the case for Google’s parent company Alphabet in July though. Alphabet experienced double dismay recently with the failed acquisitions of HubSpot and Wiz. We dive deeper into both acquisition processes below:
Financing
Below we summarized a few tech financing transactions announced in July:
Public Market Dashboard Year-to-Date to July 2024
1. The WST Index consists of 39 publicly traded Canadian software and technology companies tracked by Whitehorn to represent the Canadian software and technology sector.
Mergers and Acquisitions
July 1 – Altair (NASDAQ:ALTR) acquires Ottawa based Metrics Design Automation. Acquisition of SaaS provider for semiconductor electronic functional simulation and design verification to enhance tech offerings.
July 4 – CGI (TSX:CGI) acquires Western Canadian based Celero. Acquisition of technology services provider to credit unions and financial institutions with 150 personnel from three Prairie credit union centrals.
July 9 – Montreal based mdf commerce acquires Davis, CA based EcoInteractive. Acquisition of SaaS provider for transportation, environmental and local government agencies in the U.S. from Alpine Software Group.
July 9 – D2L (TSX:DTOL) acquires Norwegian company H5p Group. Acquisition of EdTech provider of interactive content creation software with a global user base over 50 countries to accelerate interactive content creation.
July 9 – Dallas based Improving acquires Winnipeg based Imaginet. Acquisition of tech firm specializing in Microsoft consulting and implementation with offices in Winnipeg and Dallas to improve expertise and North American presence.
July 9 – Scope AI (CSE:SCPE) acquires Vancouver based Advanced quantum security technology. Acquisition of the ownership and rights relating to the delivery and application of quantum resilient entropy from Ovryde to increase data protection capabilities.
July 9 – DeFi Technologies (OTC:DEFTF) acquires Cheyenne, WY based Stillman Digital. Acquisition of OTC desk and digital asset liquidity provider to enhance trading capabilities and to diversify client base.
July 10 – Bell (TSX:BCE) acquires Mississauga based Stratejm. Acquisition of Security-as-a-Service solutions provider with AI expertise to increase cybersceurity offerings.
July 10 – Bell (TSX:BCE) acquires Halifax based CloudKettle. Acquisition of professional services provider specializing in Salesforce enterprise implementation.
July 15 – Orlando based MethodHub Consulting acquires Mississauga based Zortech. Acquisition of IT and recruiting consulting services provider to the telecom and e-commerce sectors with 70 personnel to expand Canadian presence.
July 15 – Houston based Detechtion Technologies acquires Calgary based EZ Ops. Acquisition of field operations and logistics management software solutions provider for the oil and gas industry to enhance field service management and to complement Fieldlink product offerings.
July 16 – New York based Mod Op acquires Calgary based Evans Hunt. Acquisition of full service digital agency to strengthen Canadian presence particularly in the travel and tourism, energy and telecom sectors.
July 17 – Toronto based PathFactory acquires Toronto based Uberflip. Acquisition of content experience platform provider specializing in resource centres and dynamic landing pages by content intelligence company.
July 17 – Toronto based Invixium acquires Norwalk, CT based Triax Technologies. Acquisition of workforce optimization software solutions provider to expand biometric solutions with AI based offerings.
July 17 – Montreal based Garda World Security acquires Alpharetta, GA based OnSolve. Acquisition of provider of critical event management, including risk intelligence, mass communications, incident management and travel risk management solutions to enhance risk management solutions.
July 25 – Miami based Crossmint acquires Toronto based Cycle AI. All-cash acquisition of AI user research startup by enterprise blockchain platform provider to accelerate AI roadmap.
July 29 – Tampa based DAS Health Ventures acquires North American Digital Health division from a Canadian digital transformation provider. Acquisition of the North American digital health division from a digital transformation provider to expand into the Canadian market and to deepen presence in the senior care sector.
July 30 – VitalHub (TSX:VHI) acquires Toronto based MedCurrent. Acquisition of clinical decision support company offering OrderWise, a real-time clinical decision-making process platform using AI to enhance tech solutions that streamline healthcare delivery.
