OMERS Private Equity (OPE) has agreed to acquire Paradigm Outcomes, a Walnut Creek, California-based provider of catastrophic and complex case management. Terms weren’t disclosed. The seller is U.S. private equity firm Summit Partners, which acquired Paradigm in 2015 from Lightyear Capital. Summit will continue to invest in the company. Established in 1991, Paradigm provides management services to the U.S. workers’ compensation industry, helping to improve health outcomes and lower overall costs. OPE is the private equity arm of the Ontario Municipal Employees Retirement System (OMERS).
Expeto Wireless Inc has secured close to $4 million in a Series A financing. The round was led by U.S. venture capital firm Lavrock Ventures with participation from existing Canadian investors Evok Innovations and Mistral Venture Partners. Based in Victoria, British Columbia and San Francisco, Expeto’s platform helps businesses manage internet-of-things deployments over 4G-LTE networks while maintaining their security protocols. Founded in 2015, the company is led by CEO Ryley MacKenzie. The funds raised will be used by Expeto to expand engagements with natural resource companies and further develop its partnerships with cellular providers.
Northleaf Capital Partners has secured US$2.2 billion in new commitments for its global private equity program. The capital was raised for Northleaf Private Equity Investors VII (NPE VII), Northleaf Secondary Partners II (NSP II) and several separately managed accounts. NSP II, the firm’s second secondaries fund, was closed above target at US$800 million. NPE VII remains open to new investors until early 2019. Northleaf’s strategy combines mid-market fund investments with secondary deals and direct minority investments and co-investments. The Toronto-based firm now manages over US$11 billion in private equity, private credit and infrastructure commitments on behalf of institutional investors in North America and Europe.
Australis Capital, a U.S. investor in the cannabis industry, has made a non-binding proposal to acquire Rthm Technologies Inc, a Toronto-based mobile health and fitness app. Australis proposes to buy Rthm for $1 million in cash plus common share issues, subject to several conditions. Rthm CEO Alexander Mosa said his company’s app addresses the “burden placed on consumers and patients to navigate a variety of cannabis products with divergent biological effects,” which he called the “chief shortcoming” of the industry. Founded in 2014, Rthm was backed last year by Canadian consumer venture capital firm District Ventures Capital.
Vancouver-based biotechnology company Phoenix Molecular Designs (Phoenix MD) has raised $2.7 million in financing. The round included $2 million of equity, led by Canadian venture capital firm Pallasite Ventures with participation from new and existing angel investors, and about $670,000 in non-dilutive capital. As a result, Pallasite Managing Partner Chris Bissonnette joined the board. Founded in 2012 by CEO Sandra Dunn, Phoenix MD is developing small molecule kinase inhibitors as a targeted therapy for cancer, with a focus on triple-negative breast cancer. It will use the funds raised to advance its lead asset, PMD-026, a disease-modifying therapeutic treatment.
Impact Group, a U.S. grocery sales and marketing agency, has acquired Cluep, a Toronto-based artificial intelligence-enabled mobile advertising platform. No financial terms were disclosed. Founded in 2012 by CEO Karan Walia, CTO Anton Mamonov and Ad Ops Director Sobi Walia, Cluep helps brands connect with consumers by serving targeted advertising based on social media activity. It will continue operating under the Cluep brand. Impact Group said the acquisition will bring digital resources to clients in the grocery industry. Boise, Idaho-based Impact Group was acquired in 2016 by U.S. private equity firm CI Capital Partners.
Brizi Inc, a Toronto-based remote-control camera systems developer, has raised $2.5 million in seed-stage financing led by U.S. investor 2EP. Founded in 2016 by CEO Anna Hu and CTO Sami Dalati, Brizi’s technology helps users tap into nearby cameras to capture group images at sports events and landmarks. The platform also provides brands with new sponsorship opportunities and access to data and analytics. Brizi will use the seed round’s proceeds for research and development and market expansion.
U.S. angel investment firm Seed River has provided undisclosed financing to AON3D, a Montréal-based industrial 3D printing specialist. Led by CEO Kevin Han, who helped found the company in 2015, AON3D is developing tools for making 3D manufacturing with plastics easier and more affordable. The startup, which has previously been backed by Off the Grid Ventures, Prototype Capital and other investors, will use the partnership with Seed River to support its long-term growth initiatives.
DarwinAI, a Waterloo-based artificial intelligence (AI) company, has emerged from stealth and closed a $3 million seed-stage financing. The round was led by U.S. venture capital firm Obvious Ventures and Canadian firm iNovia Capital. They were joined by angel investors from Creative Destruction Lab. Founded last year by University of Waterloo alumni, including Chief Scientist Alexander Wong and CEO Sheldon Fernandez, co-founder of Infusion, DarwinAI’s platform uses AI to reduce the complexity in designing and building deep neural networks for real-world applications. DarwinAI said it will use the funds raised to bring its technology to market.
Dfendus Security Solutions Inc has acquired Actron Security Systems Ltd, a Woodbridge, Ontario-based provider of security, surveillance and access control systems. It also acquired Fire & Security Centre Inc, a Dryden, Ontario-based provider of fire protection and alarm and security systems. Terms weren’t disclosed. Dfendus, a Thornhill, Ontario-based integrated security business, said the acquisitions will expand its market presence in Ontario. Earlier this year, Dfendus received an investment from Canadian private investment firm Mill Street & Co. The deal supported the company’s buy of Inforce Security Corp.
Québec City-based biotechnology company Feldan Therapeutics has raised $12.5 million in a Series A financing. The round was led by GC, the parent of South Korean protein therapeutics maker GC Pharma. It was joined by Stonebridge Ventures as well as Anges Québec and Anges Québec Capital, both existing investors, and others. Led by CEO Francois-Thomas Michaud, who helped launch the company in 2007, Feldan is developing a pipeline of therapeutic applications based on the Feldan Shuttle, its peptide intracellular delivery technology. The funds raised will support pre-clinical work that will enable the transfer of Feldan’s technology to clinical trials.
Westridge Cabinets Ltd, a Red Deer, Alberta-based cabinet maker, has acquired the assets of Classic Kitchens Ltd, a Calgary-based supplier of cabinets for homes and renovation projects. No financial terms were released for the deal, which was funded by Canadian private equity firm Signal Hill Equity Partners. Signal Hill acquired Westridge in 2011. The merger of the companies, which creates Alberta’s largest cabinet manufacturer, provides “significant operating efficiencies and scale that we can continue to build and grow with,” Signal Hill Managing Partner James Johnson said.
Demers-Braun has acquired Crestline Coach Ltd, a Saskatoon-based maker of ambulances and specialized vehicles and distributor of small and medium-sized buses in Canada. No financial terms were disclosed. Demers-Braun, an ambulance manufacturer, said the deal broadens its service offering by bringing specialized vehicles into the portfolio. Demers-Braun was formed earlier in 2018 with the merger of Beloeil, Québec-based Demers Ambulances and Van Wert, Ohio-based Braun Industries Inc. The merger was led by Canadian private equity firm Clearspring Capital Partners alongside Caisse de dépôt et placement du Québec.
U.S. business software company Infor has acquired Vivonet Inc, a Vancouver-based provider of cloud solutions to the hospitality industry. Terms weren’t disclosed. Established in 2000, Vivonet offers solutions for point-of-sale, kiosks, kitchen systems, payments, employee scheduling, and food and labour cost management. Its products are deployed at more than 4,000 locations. Vivonet has been backed since 2012 by U.S. private equity firm Marlin Equity Partners. New York-based Infor, owned since 2002 by U.S. private equity firm Golden Gate Capital, said the acquisition extends its suite of hospitality solutions for companies in food service micro-verticals.
Canadian early-stage venture capital firm Panache Ventures has recruited Prashant Matta as a partner. Operating from Toronto, Matta will lead Panache’s regional deal and fund management activities. Matta joins Panache from OMERS Ventures, where for more than three years he served on the investment team. Before then, he was a manager in Samsung Electornic‘s Global Strategy Group. Montréal-based Panache, launched in 2017 by former 500 Startups Canada principals, earlier this year raised $25 million in the first close of its inaugural seed fund.
Hammerhead Resources Inc, formerly known as Canadian International Oil Corp, has raised a preferred share equity commitment of up to $300 million led by U.S. energy private equity firm Riverstone Holdings, the company’s largest shareholder. The deal will feature a rights offering to certain existing shareholders, allowing them to participate in the financing. Based in Calgary, Hammerhead is an oil and gas company operating in the liquids-rich, light oil plays of the Alberta Deep Basin. Led by President and CEO Scott Sobie, the company will use the funds raised to continue its organic growth strategy and further develop its resource base.
Responsive, a Vancouver-based wealth advisor solution for financial institutions, has raised $1.1 million in seed-stage financing. The round was led by Plug and Play Ventures, a U.S. venture capital firm. Founded in 2015 by CEO Davyde Wachell, Responsive’s technology uses machine learning to provide insights from real-time data to wealth managers, helping them anticipate client needs and improve performance. The startup will use the funds raised to further develop intellectual property based on new developments in artificial intelligence and behavioural sciences, and run pilots with financial institutions.
Canadian alternative equity firm Alaris Royalty Corp has invested US$46 million in Body Contour Centers LLC (BCC), a Kirkland, Washington-based plastic surgery practice with more than 50 locations across the United States. Alaris also committed to invest an additional US$45 million in BCC, subject to the new portfolio company achieving certain financial targets. The proceeds will be used by BCC to fund growth and provide partial liquidity to existing shareholders. Alaris also invested US$7 million more in Accscient LLC, an Atlanta, Georgia-based provider of information technology staffing, consulting and outsourcing services. Alaris first invested in the business last year.