Spotlight

An archive of past spotlight issues.

 

The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry.

Softchoice Files for IPO

Announcement Details

  • Softchoice Corporation, a leading technology solutions provider in North America, announced yesterday that it has filed a preliminary prospectus for an initial public offering.
  • Softchoice’s common shares will be traded on the Toronto Stock Exchange, although the number of shares and price have not yet been disclosed.
  • Before Toronto-based Softchoice was taken private in 2013 by Birch Hill Equity Partners for $412 million, martinwolf advised it in three transactions that broadened its solutions and services offerings and grew its presence in the United States.
  • The offering is being made through a syndicate of underwriters led by TD Securities Inc. and Goldman Sachs Canada Inc.
  • Other financial institutions involved include RBC Capital Markets, National Bank Financial Inc., CIBC Capital Markets, Scotiabank, BMO Capital Markets, Cormark Securities Inc., Laurentian Bank Securities Inc., ATB Capital Markets Inc., Raymond James Ltd. and INFOR Financial Inc.

 

martinwolf Analysis

  • Largest in Years: Softchoice is one of the largest supply chain companies to announce an IPO in recent memory. In 2020, the powerhouse solution provider reported $836.8 million in net sales and $22.9 million in income from operations.
  • No SPAC, No Problem: Despite early 2021 popularity, SPACs have cooled off as the crowded space has seen companies settle for smaller targets. Softchoice made an informed decision to pursue an IPO, which will allow for a more knowledgeable shareholder base.
  • Microsoft Partner of the Year: Softchoice was named 2020 Microsoft Canada Partner of the Year. As Microsoft partners have themselves become more desirable, so too have Softchoice and its peers.
  • Private to Public: IT companies have in the last several years trended toward private exits, rather than public offerings. In this case, Softchoice is pursuing a hybrid approach – Birch Hill will retain ownership post sale, but this offering will allow Softchoice to additionally tap into the public equity markets.

 

For more information about this transaction, click here to read the press release from Softchoice.

 

 

martinwolf was not the advisor in this transaction. 

previous post Back to Articles next post

09 May 2023

DynamicsCon LIVE Conference Information

martinwolf will be attending the DynamicsCon LIVE conference in Scottsdale May 22-25. Book a confidential one-on-one meeting with Michael Rosholt to learn about market trends, current valuations, and how to prepare for a sale.    DynamicsCon attendees are also eligible for a complementary M&A Readiness Scorecard from martinwolf.   Contact Michael Rosholt at mrosholt@martinwolf.com to...

22 Feb 2023

How Microsoft Channel Partners Can Command High Valuations

In today’s rapidly changing ecosystem, simple organic growth doesn’t give Microsoft Channel Partners long-term competitive advantage.   During the last five years, Microsoft Channel Partners have commanded high valuations due to strong and sustainable business models, as well as a track record of profitability. Most were small mid-market businesses that had to decide to be...

31 Jan 2023

Rising Interest Rates Chill Private Equity Pace

After a year of strength on the private equity front, 2022 is now in the rearview mirror and industry professionals anticipate a downgrade in performance for the coming year.   Despite the fluctuations of the past few years, private equity has withstood the challenges relatively well. However, in certain areas such as exit activity and...