Corporate Finance in Atlantic Canada

Commentary on corporate finance issues for small- & mid-market private companies in Atlantic Canada

Archive for June 2011

Another IT merger

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http://www.internetworking-atlantic.com/documents/news/IAI%20Acquires%20Competitor.pdf

Halifax, NS-based Internetworking Atlantic today announced that it has acquired Halifax’s Airfire Telephone and Data.

Sounds like another very complementary acquisition.

Written by Dan Jennings

June 17, 2011 at 2:22 pm

Architects sell out

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http://www.newswire.ca/en/releases/archive/June2011/15/c5536.html

Montreal-based Genivar (TSX:  GNV) has acquired WHW Architects of Halifax.

This is the second Atlantic transaction for Genivar after the Terrain Group deal last year.  Genivar has been consolidating a series of engineering, surveying and architecture related companies across the country.

Written by Dan Jennings

June 16, 2011 at 8:38 am

Xplornet acquisition

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http://www.nb.dailybusinessbuzz.ca/Provincial-News/2011-06-10/article-2574953/NB%3A-Xplornet-acquires-more-than-1%2C300-broadband-subscribers-from-NetKaster/1

Woodstock, NB-based Xplornet Communications announced the acquisition of 1,300 broadband subscribers in Alberta and BC from NetKaster.

Xplornet Communications specializes in rural broadband services across Canada and is part of Barrett Corporation headquartered in Woodstock, NB.

Written by Dan Jennings

June 12, 2011 at 11:46 am

Xplornet closes $230 mil financing

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http://www.xplornet.com/news/in-the-news/$230-million-financing-completed-for-xplornet.aspx

Congratulations to Xplornet Communications on closing a $230 million private financing.  The funds are being used to support and expand Xplornet’s broadband network across Canada.  The Company has invested in a hybrid satellite and fixed wireless network designed to meet Canada’s geographic and topographic challenges.

Xplornet is part of Woodstock, NB-based Barrett Corporation.

Written by Dan Jennings

June 12, 2011 at 11:42 am

Moncton Angel Den

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http://propelict.com/news/angel-den-comes-moncton

http://www.monctonconnect.com/angelden

If you are seeking equity capital, you should check out this “friendlier” version of the Dragons Den … Angel Den in Moncton on Wed July 13.

Written by Dan Jennings

June 12, 2011 at 11:19 am

Posted in CF Musings

Eastern Sign-Print changes operators

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http://www.ns.dailybusinessbuzz.ca/Provincial-News/2011-06-07/article-2565558/NS%3A-Stellarton-printing-company-cutting-17-jobs%2C-joining-forces-with-Xerox/1

Sobeys-owned Eastern Sign-Print in Stellarton, NS has announced that its new day-to-day operator is Xerox Canada and it will focus on the signage and printing needs of the Sobeys group of companies.  Sobeys retains ownership and strategic oversight.

Written by Dan Jennings

June 7, 2011 at 8:27 pm

PEI litigation in the seafood industry

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http://www.pe.dailybusinessbuzz.ca/Provincial-News/2011-06-07/article-2564771/PE%3A-Province-files-suit-against-OCI/1

The dispute between the Province of PEI and NL-based Ocean Choice continued today with a $10 mil lawsuit filed by the province against the owner of the lobster plant in Souris.  The province claims the company has breached an operating agreement that was signed when Ocean Choice acquired the assets of the former Polar Seafoods.

Written by Dan Jennings

June 7, 2011 at 8:17 pm

Posted in CF Musings

Another insurance broker sells

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Proudfoot-Fox-Phinney Insurance of New Glasgow, NS has sold to the MacLeod Lorway Group (based in Sydney, NS).

Another example of the extreme consolidation underway in the insurance broker industry, and another example of a strategic buyer (see my earlier posts about strategic/industry buyers versus financial buyers).

Written by Dan Jennings

June 2, 2011 at 8:35 pm

A new financial metric?

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http://dealbook.nytimes.com/2011/06/02/the-groupon-i-p-o-what-is-adjusted-csoi/

Groupon, the “social buying” company (i.e. online coupons), announced today its planned IPO.

Check out the link above to read a story on Groupon’s focus on a financial term it calls “adjusted CSOI”, or adjusted consolidated segment operating income.  It is essentially operating income before marketing and acquisition-related costs. The company claims that this measure of profitability is more reflective of its future financial health since it doesn’t expect marketing expenses to continue at the current pace.  Groupon is spending a very large amount of money in a short period of time to attract long-term market share, also why it made 13 acquisitions in the last year.

But … to quote the NY Times article:

“But those are very real costs, notably its massive marketing budget.  The company spent $263.2 million in marketing last year, an astronomical leap over the $4.5 million it reported for 2009.”

Anyone old enough to remember the tech bubble that ended in 2000-01?  I distinctly recall Nortel executives touting a term called “adjusted EBITDA” that excluded acquisition-related costs … which were largely driving Nortel’s revenue growth. Doesn’t this all sound familiar??

Written by Dan Jennings

June 2, 2011 at 8:16 pm

Posted in CF Musings

Truck-mounted equipment deal

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http://www.wireservice.ca/index.php?module=News&func=display&sid=5597

Dartmouth, NS’s Ocean Truck Equipment has sold to Ontario-based Drive Products.

Clearly, this is an example of a strategic buyer consolidating in its industry (see some of my earlier posts about strategic versus financial buyers).

Written by Dan Jennings

June 2, 2011 at 7:45 pm