Software and Technology Monthly Newsletter November 2024 in Review
In This Edition:
November 2024 In Review
How Google’s Search Success is Harming Google
Public Market Dashboard - November 2024
Mergers and Acquisitions
November 2024 in Review
November 1 The first Tesla Cybertrucks have been delivered into Canada.
November 6 The federal government orders TikTok to wind up its Canadian operations citing national security risk, but stops short of banning the use of the social media platform.
November 14 Meta Platforms (NASDAQ:FB) is fined €798MM by EU regulators for tying Facebook Marketplace classified ad service to the social network, imposing unfair trading conditions on other online ad service providers.
November 20 Legal software provider Dye & Durham (TSX:DND) pauses strategic review until after its 2024 annual meeting, citing ongoing activist situation.
How Google’s Search Success is Harming Google
The U.S. Justice Department is seeking to break up the Alphabet - Google empire after a District of Columbia judge ruled the tech giant abused its dominance in online search and violated antitrust law. This is part of the Biden administration's efforts to rein in anticompetitive behaviour demonstrated in various industries including healthcare, groceries, and tech. Depending on the eventual outcome of this ruling, there may be longer term implications on all big tech going forward.
“Google is a monopolist, and it has acted as one to maintain its monopoly.”
Currently, the Department of Justice (DOJ) is seeking the following:
Divest its Chrome browser and its Android mobile operating system.
Divest any investment or ownership in query-based AI products, advertising technology products and search distributors.
New search data licensing requirements offering rivals access to Google's index and proprietary search know-hows
Ending agreements where Google is the default search engine on mobile devices and internet browsers
Key Google Figures
Less Competitive?
A part of big tech success such as Amazon, Apple, Meta and Alphabet is attributed to the tech ecosystem environment where its products and services integrate with each other seamlessly. Consumers adore the Google convenience and the overall user experience from navigating between YouTube, Google Drive, Gmail, Chrome etc. By forcing the breakup of big tech, the synergies achieved over the past decades will be disrupted and ultimately, worsen the user experience.
Trump Stance
It is unknown what the incoming Trump administration's stance on big tech breakup is. Despite Trump's DOJ initiating the antitrust suit against Google, the President-elect has previously expressed concerns that consequences for Google in this antitrust case could favour China. Alphabet has indicated an appeal is forthcoming, which indicates this is far from an ultimate resolution.
Financing
Public Market Dashboard Year-to-Date to November 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
Nov 3 – Abbotsford based SiteTechnology acquires Vancouver based Quicktech. Acquisition of managed IT services provider to strengthen capacity and offerings.
Nov 4 – Toronto based Compugen acquires Ottawa based SynerSolutions Technologies. Acquisition of cybersecurity services provider for the defence sector to enhance security capabilities.
Nov 4 – BCE (TSX:BCE) acquires Kirkland, WA based Ziply Fiber. $7B acquisition of fibre internet provider in the Pacific Northwest to extend fibre footprint in the U.S at a 14.3x EBITDA multiple.
Nov 5 – Spanish company Juniper Group acquires Scottish company Traveltek. Acquisition of travel software company by subsidiary of Constellation Software from YFM Equity Partners.
Nov 7 – Blainville, QC based SPI Health & Safety acquires Trois-Rivières, QC based SSTenligne. Acquisition of online health and safety training centre provider to advance health and safety capabilities and to complement existing solutions.
Nov 12 – Computer Modelling Group (TSX:CMG) acquires German company Sharp Reflections. $37MM acquisition of seismic processing and interpretation platform provider for geophysicists and quantitative interpreters leveraging cloud computing to expand seismic solutions.
Nov 12 – Philadelphia based IT Solutions Consulting acquires Toronto based PACE Technical. Acquisition of outsourced IT services provider for SMEs to expand into the Canadian market.
Nov 12 – Beverly Hills, CA based Bionoid Pharma acquires Toronto based EnhancedSupplements.net. Acquisition of e-commerce platform provider to accelerate expansion into the health and wellness sector.
Nov 14 – Intact Financial (TSX:IFC) acquires Toronto based Jiffy. Acquisition of home maintenance app provider connecting homeowners with local service professionals to accelerate service expansion.
Nov 14 – Montreal based Nuvei acquires Dutch company Payaut. Acquisition of fintech startup providing automated payment solutions for online platforms and marketplaces to enhance offerings.
Nov 14 – Toronto based Metaverse Group acquires Seychelles based Pavia. Acquisition of decentralized virtual cross-chain world provider to expand virtual infrastructure offerings and to enhance enterprise capabilities.
Nov 18 – French company Talan acquires Montreal based Thinkmax Consulting. Acquisition of Microsoft Dynamics 365 implementation partner to enhance customer service and to leverage expertise.
Nov 19 – Montreal based Valsoft acquires Ann Arbor, MI based Above the Treeline oa Edelweiss. Acquisition of book software platform provider connecting publishers, booksellers, librarians and book enthusiasts.
Nov 19 – Toronto based Omegro acquires Berwyn, PA based 4R Systems. Acquisition of inventory and supply chain optimization solutions provider for the retail and consumer goods sector to enhance offerings as a tuck-in to subsidiary company, Gaina.
Nov 20 – Toronto based Perseus Operating Group acquires Brazilian company Matrix Sistemas e Servicos. Acquisition of clinical lab information systems provider for the healthcare sector to expand into the Brazilian healthcare market.
Nov 20 – Toronto based TechTO acquires Toronto based Peerscale. Acquisition of peer-to-peer network for tech leaders to broaden programming to later-stage entrepreneurs.
Nov 20 – Ottawa based N-able Technologies acquires Washington, DC based Adlumin. Acquisition of security operations platform provider to enhance security, unified endpoint management, and data protection solutions.
Nov 21 – Toronto based Goose Digital acquires Cambridge, ON based MoreSALES. Acquisition of boutique agency specializing in digital marketing and marketing automation services in commercial B2B verticals to strengthen service offerings.
Nov 24 – Streamplay Studio (ASX:SP8) acquires Saskatoon based Noodlecake Studios. Acquisition of indie gaming developer from Zplay (HK) Technology Co to expand North American gaming presence.
Nov 26 – Toronto based Omegro acquires Atlanta based Dassian Inc. Acquisition of SAP certified add-ons provider for complex contract and project management to expand market presence and deepen capabilities.
Nov 27 – Montreal based Valsoft acquires Nashua, NH based Pinpoint Global Communications. Acquisition of compliance management software provider serving the financial services and health sectors to strengthen US presence and to expand into training and compliance space.
Nov 29 – Toronto based Volaris Group acquires French company 4D SAS. Acquisition of hybrid low-code development platform provider for mission-critical business application to expand software development platform.
