The Mississauga, Ont.-based software company will be sold for between $500 million and $600 million, making it the fourth Canadian software company Hg has bought in the past year. Prophix expects the acquisition to accelerate its growth and fund new product development. (The Globe and Mail, The Logic)

Talking point: Prophix creates corporate performance-management software geared mostly toward mid-market companies. It was severely impacted by the pandemic, with bookings falling to half their level in the second quarter of 2020 compared to the year prior. While company executives had previously said they had no intention of selling the business, the pandemic changed their strategy. “When you’re bootstrapped at the size and scale we’re at, a misstep could burn a hole in your balance sheet and jeopardize everything that you’ve built,” including the livelihood of employees,” Prophix’s CEO Alok Ajmera told The Globe. The transaction is Hg’s 17th investment in the software space, with a total invested capital of over US$3.5 billion. In 2019, Hg bought controlling stakes in Calgary-based software firm Benevity, Montreal medical-imaging software company Intelerad Medical Systems and Toronto-based accounting firm CaseWare International.