Software and Technology Monthly Newsletter - September 2024
In This Edition:
August 2024 In Review
The Pursuit of AI by CIBC
Cracks emerging in the Canadian Tech Sector?
Public Market Dashboard - August 2024
Mergers and Acquisitions
August 2024 in Review
August 11 - AutoCanada (TSX:ACQ) announces a cybersecurity breach following another cybersecurity attack on CDK Global, an auto dealer software provider that affected AutoCanada's operations in June as well.
August 13 - The CRTC expands its decision to allow small internet service providers to use larger rivals' existing fibre networks to offer services beginning in February 2025.
August 14 - Corus Entertainment, a media company owned by the Shaw family, files a legal claim that Rogers Communications (TSX:RCI-B) is abusing its market power after the acquisition of Shaw in 2023.
August 14 - The U.S. Justice Department is considering antitrust actions to breakup Google after a landmark court ruling found Google monopolized the online search market.
August 19 - Cogeco (TSX:CGO) signs partnership agreements with a national wireless network operator and Eastlink to develop wireless services primarily in ON and QC, in addition to its cable service offering.
The Pursuit of AI by CIBC
One of the nation’s largest banks, CIBC (TSX:CM) is doubling down on AI as it aggressively pursues a boost in productivity and innovation.
August 7: Announces plans to hire over 200 data and AI professionals within the next 12 months to upgrade its AI capabilities.
August 15: Launches two new AI-driven tools:
CIBC AI
For CIBC employee use.
Generative, custom-built AI platform designed to foster innovation and drive productivity improvements throughout organization.
Allows workforce to automate tasks and increase efficiency.
Pilot phase has provided data insights to support broader rollout plans.
GitHub CoPilot
For CIBC’s developers.
Assists developers by providing code suggestions, automating repetitive tasks, and enhancing coding efficiency.
Demonstrated 10-15 per cent productivity boost among developer community across the enterprise.
““Now is the right time to add to our talent base through hiring and upskilling in data and AI-focused roles, as we leverage this new technology to do more for our clients and deliver a better experience for team members.””
Cracks Emerging In The Canadian Tech Sector?
Despite the continuous global focus on Artificial Intelligence, the broader tech sector in Canada appears to show signs of slowing down in the month of August. We showcase a few tech findings below:
Financing
Below we summarized a few tech financing transactions announced in August:
Public Market Dashboard Year-to-Date to August 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
Aug 1 – Calgary based GAM Tech acquires Lacombe, AB based Cyber Tech 360. Acquisition of cybersecurity services and advanced managed IT solutions provider to expand market share.
Aug 1 – Albany, NY based Bestpass acquires Edmonton based Drivewyze. Acquisition of weigh station bypass application solutions provider to enhance toll management and weigh station bypass solutions.
Aug 1 – Chicago based Mediafly acquires Vancouver based Dooly Research. Acquisition of sales software provider to enhance smart analytic tools and enhance customer experience.
Aug 5 – Nuvei (TSX:NVEI) acquires Brazilian company Pay2All. Acquisition of licensed payment institution in Brazil to enhance capabilities in the Brazilian market and to enhance presence in the Latin American region.
Aug 6 – Tarachi Gold (CSE:TRG) acquires Fort Lauderdale based Prospector Poral. Acquisition of AI-based R&D analysis solutions provider to the mining sector to transform into an AI-focused mining services company.
Aug 6 – Nashville based Celero Commerce acquires Halifax based SONA. Acquisition of electronic payments technology provider that processes $26B in annual card volume to enhance technology and product solutions.
Aug 8 – Toronto based Volaris Group acquires Brazilian company IDS. Acquisition of public management software solutions provider offering municipalities with healthcare, social welfare, and education systems management.
Aug 12 – Columbus, OH based irth Solutions acquires OneSoft Solutions (TSXV:OSS). $114MM acquisition of cognitive integrity management software offering AI-powered enterprise pipeline integrity management solutions to enhance product offerings and to complement solutions.
Aug 12 – AGEDB Technology (TSXV:AGET) acquires select patents from San Franciso based Bitnine Holdings. Acquisition of data processing and graph database technologies patents to enhance solutions and technological capabilities.
Aug 12 – Toronto based Fulcrum IT Partners acquires Cleveland, OH based Fortress SRM. Acquisition of cybersecurity services provider from MCPC to enhance cybersecurity portfolio.
Aug 13 – German firm Mrge acquires Ottawa based MaxBounty. Acquisition of performance marketing platform provider to diversify offerings and to strengthen position in consolidating market.
Aug 14 – Element Fleet Management (TSX:EFN) acquires Israeli firm Autofleet. Acquisition of technology platform and optimized mobility solutions provider for the fleet industry with 70 personnel to fast-track modernization of digital capabilities.
Aug 14 – Montreal based Valsoft acquires Nashville based Equinox Information Systems. Acquisition of software provider with expertise in fraud management, business assurance, and network monitoring within the telecommunications industry to further strengthen U.S. market presence.
Aug 16 – German firm AutoScout24 acquires Toronto based TRADER. Acquisition of online automotive marketplace platform provider from Thoma Bravo to extend presence outside of Europe.
Aug 19 – Impact Development Group (TSXV:IMPT) acquires Willoughby, OH based Fusion. Acquisition of software platform designed to streamline the administration of low-income housing tax credits provider to expand into adjacent markets and revenue streams.
Aug 19 – Swiss firm Accelleron acquires Montreal based True North Marine. Acquisition of Canadian firm specializing in digital weather routing and voyage optimization to complement offerings that address key aspects of vessel performances.
Aug 19 – Mii.TV acquires the Peeks Social platform from Personas Social (TSXV:PRSN). $4.54MM acquisition of web and app-based video social platform.
Aug 20 – Hank Payments (TSXV:HANK) acquires a private technology company. $7.2MM acquisition of private tech firm by Banking-as-a-Service company.
Aug 21 – Alpharetta, GA based Agilysys acquires Markham, ON based Book4Time. $204MM acquisition of SaaS company providing revenue and spa management for the hospitality and wellness industries to increase digital product and service portfolio.
Aug 26 – Shift4Payments (NYSE:FOUR) acquires Gixex (TSX:GIVX). $200MM acquisition of integrated technology solutions provider of gift cards, point-of-sale solutions, and loyalty programs to increase engagement services.
Aug 26 – Markham, ON based Vertus Group acquires Halifax based B4Checkin. Acquisition of cloud-based tools provider for the hospitality industry by division of Jonas Software to expand hospitality vertical offerings and ecosystem.
Aug 27 – Toronto based Banyan Software acquires Lincoln, NE based Automated Systems. Acquisition of banking functions platform provider offering teller management, digital banking, mobile app solutions and outsourced hosting services to enhance fintech offerings.
Aug 27 – Toronto based Volaris Group acquires UK company Zupa Tech. Acquisition of catering management platform (Caternet) provider to enhance foodservice and hospitality sector offerings.
