Canaccord Genuity’s special-purpose acquisition corporation (SPAC) has discussed raising about US$50 million to take the Toronto-based smart-thermostat and security firm public, according to a Bloomberg source. The merger would reportedly value the enterprise at US$490 million. Ecobee said it had raised more than $200 million following its last funding round in 2018. (Bloomberg)

Talking point: The prospective merger is a departure from Canaccord’s initial focus on cannabis when it launched its blank-cheque firm to take others public in 2019. Since then, the cannabis market has softened, while large tech firms are doubling down on smart-home devices. Google recently paid US$450 million for a 6.6 per cent stake in security company ADT, in a bid to make Google Nest—an Ecobee competitor—a “cornerstone” of ADT’s smart-home offering. Last week, Sidewalk Labs launched an AI-powered thermostat for commercial buildings. The IPO talks follow a 10 per cent staff cut at Ecobee and a pause on a new product line “to preserve the long term viability and value of the business,” during the pandemic.