Kirk Falconer
Vancouver-based digital consultancy Appnovation has secured a $15 million minority investment from Canadian Business Growth Fund (CBGF) and U.K.-based BGF. Founded in 2007 by CEO Arnold Leung, Appnovation provides a range of digital solutions and support services to businesses, government agencies, higher education institutions and non-profit organizations worldwide. The company plans to use the financing's proceeds to strengthen its balance sheet and scale internationally. The Appnovation deal marks the first partnership of CBGF and BGF. CBGF, which launched in 2018 with a $545 million evergreen fund backed by 13 financial institutions, was patterned after the British investor.
The private equity group of Brookfield Asset Management has agreed to acquire a 57 percent controlling interest in Genworth MI Canada Inc (TSX: MIC), an Oakville, Ontario-based private residential mortgage insurer. The deal, which reflects a purchase price of about $2.4 billion, is expected to close in the second half of 2019. The seller is Genworth Financial Inc (NYSE: GNW), a Richmond, Virginia-based insurance holding company. Genworth Canada, through its subsidiary Genworth Financial Mortgage Insurance Co Canada, provides mortgage default insurance to Canadian residential mortgage lenders. Last month, Genworth Financial said it was considering strategic alternatives for Genworth Canada.
Universal mCloud Corp (TSX-V: MCLD) has received a $13 million loan from Integrated Private Debt Fund VI. The proceeds will be used to support the recent acquisition of Autopro Automation Consultants Inc, a Calgary-based engineering consulting firm specializing in automation solutions, reduce debt, and provide working capital. Based in Vancouver, Universal mCloud provides artificial intelligence-enabled technology solutions to help businesses manage their energy assets. Integrated Private Debt Fund VI closed this year at $843 million. Its manager, Integrated Asset Management Corp, was later acquired by Fiera Capital Corp.
Hazel Technologies Inc, a Chicago-based agricultural technology company focused on combating food waste, has raised US$13 million in a Series B financing. The round was led by Pangaea Ventures, a Canadian advanced materials venture capital firm, and S2G Ventures, a U.S. food and agriculture venture capital firm. They were joined by existing investors. Founded in 2015, Hazel develops new technologies to extend the quality shelf life of fresh produce. It plans to use the funds raised to grow the company's main product line and launch new solutions. Earlier this year, Pangaea closed its fourth fund, securing $95 million (US$70 million).
Fiix, a Toronto-based maintenance and asset management software provider, has acquired Alchemy IoT, a Lafayette, Colorado-based industrial asset intelligence company. No financial terms were disclosed. Fiix said the acquisition will bring artificial intelligence capabilities to its computerized maintenance management system (CMMS) products. The deal follows the close earlier this year of Fiix's $53 million (US$40 million) Series C financing. The round was led by Georgian Partners and joined by BuildGroup.
Fredericton-based agricultural technology company SomaDetect has closed a seed-stage financing, raising about $2.6 million (US$2 million). New Brunswick Innovation Foundation, the Western New York Impact Investment Fund and New York Ventures invested in the round. SomaDetect previously secured seed funding from Builders VC, Cavallo Ventures, Dairy Farmers of America and iGan Partners. Founded in 2016 by CEO Bethany Deshpande, SomaDetect has created an in-line sensor that measures critical indicators of dairy quality and health from cows at milking. It will use the financing's proceeds to expand its collection of data points from farms across North America.
Air Canada (TSX: AC) has increased the purchase price for its acquisition of all the issued and outstanding shares of Transat AT Inc (TSX: TRZ), a Montréal-based tour operator, to $18 per unit. The amended all-cash deal, expected to close in early 2020, is now valued at about $720 million. In June, Air Canada offered to acquire the company for $13 per unit or about $520 million. Air Canada, Canada's largest airline, said the transaction has the support of Letko Brosseau & Associates Inc, Transat's largest shareholder with an interest of about 19.3 percent. Transat's other shareholders include Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec.
Centric Health Corp (TSX: CHH) has agreed to sell its surgical and medical centres business to Kensington Private Equity Fund (KPEF) and Kensington Capital Advisors, KPEF's manager. The deal, which reflects a cash purchase price of $35 million, is expected to close by September 30th. Centric Health, a Toronto-based provider of pharmacy and other healthcare services to Canadian seniors, said it will use the proceeds to repay a portion of outstanding credit facilities and for working capital purposes. KPEF and Kensington Capital Advisors are affiliates of Canadian alternative investment firm Kensington Capital Partners.
Corvus Energy, a Richmond, British Columbia-based developer of maritime energy storage solutions, has raised additional, undisclosed financing. The investor was Shell Ventures, the venture capital arm of Anglo-Dutch energy and chemical group Royal Dutch Shell plc. Founded in 2009, Corvus provides energy storage in the form of modular lithium-ion battery systems for maritime, offshore, subsea and port applications. Its solutions optimize energy consumption and reduce costs and emissions. Led by CEO Geir Bjørkeli, Corvus will use the funds raised to expand internationally and further enhance its technology. Corvus' other backers include Equinor Technology Ventures and Norsk Hydro.
Caisse de dépôt et placement du Québec has made an undisclosed equity investment in Golf Avenue, a Montréal-based online retailer of pre-owned golf equipment. The deal's proceeds will fund the company's continued growth in the United States and Europe and the addition of new technology to its digital platform. The proceeds will also support the launch of Cycling Avenue, a new product for re-selling pre-owned bicycles, such as road bikes, mountain bikes and hybrid models. Founded in 2006 by Pierre-Luc Laparé and Marc-Antoine Bovet, Gold Avenue offers a selection of more than 50,000 new and used golfing products.