Saskatoon-based Vendasta has shelved plans for an IPO, and instead raised $119.5 million in a new financing round. Here’s what you need to know.
Skip to content
Saskatoon-based Vendasta has shelved plans for an IPO, and instead raised $119.5 million in a new financing round. Here’s what you need to know.
Private or public: Vendasta filed to list on the Toronto Stock Exchange in March, targeting a $100-million raise. Those plans are now paused. But CEO Brendan King insisted the firm was always running a “dual-track process.” An IPO was the option “with the most moving parts,” he said. “We were always open to private capital.”
The money: New York-based Lugard Road Capital led the round, while Vancouver-headquartered asset manager Nicola Wealth and existing backer the Canadian Business Growth Fund (CBGF) also invested. King declined to disclose the company’s updated valuation. Vendasta previously raised $40 million in a CBGF-led round in July 2019.
The IPO rush: More than a dozen Canadian scale-ups and mature tech companies have or are planning to go public this year. While the markets welcomed Farmer’s Edge, Payfare, Thinkific and Magnet Forensics, others—like MDA and Boat Rocker Media—priced lower than their initial targets. In April, The Globe and Mail reported Vendasta’s offering was having trouble selling its offering to institutional investors, citing sources familiar with the deal. On Thursday, King rejected the idea that the IPO effort struggled. “I wonder how they can think that,” he said. “We were trying to do a $100-million IPO, and we raised $120 million. If you think about the math there, we had more than our fill.” Other tech companies are forging ahead. This month, Toronto-based Softchoice, Q4 and VerticalScope have all filed prospectuses for TSX offerings.
What comes next: Software and digital-service providers use Vendasta’s platform to sell to small- and medium-sized businesses. The pandemic has accelerated such firms’ adoption of technology, particularly for online commerce, remote collaboration and virtual learning, King said: “Five or seven years has happened in one.” The firm made $42.6 million in revenue in 2020, up from $34.5 million the previous year. “When the pandemic happened, it wasn’t Walmart or Best Buy that suffered,” said King. “It was for sure small businesses.” Vendasta expects continued growth opportunities in helping those firms use technology more effectively. It also plans to expand its 525-person staff.
Loading...
Thanks for sharing!
You have shared 5 articles this month and reached the maximum amount of shares available.
CloseThis account has reached its share limit.
If you would like to purchase a sharing license please contact The Logic support at [email protected].
CloseGift the full article!
You have gifted 0 article(s) this month and have 5 remaining.
Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.
Most Popular This Week
In-depth, agenda-setting reporting
Great journalism delivered straight to your inbox.
Commentary
Carmichael: Canada’s sovereignty needs more than a strong economy
Briefing
Enbridge says Pathways and other pipeline projects still hinge on final energy deal
Brookfield’s Teskey says AI infrastructure needs ‘social licence’ as firm raises US$25B
Pembina in talks for next phase of Meta-linked data-centre power project
Best business newsletter in Canada
Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.
Exclusive events
See the bigger picture with reporters and industry experts in subscriber-exclusive events.
Membership in The Logic Council
Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.
