PE Deals

Banneker Partners to buy SaaS platform HS GovTech Solutions

HS GovTech Solutions is a Vancouver-based software-as-a-service company focused on the state, provincial and local government market.

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  • HS GovTech shareholders will receive C$0.54 per common share, representing an aggregate transaction value of about C$33.3m
  • Directors and executive officers who hold about 8.99 percent of issued and outstanding shares have agreed to vote in favor of the deal
  • HS GovTech’s securities will not be listed on any public market, and it will cease to be a reporting issuer under Canadian laws, post the transaction

Banneker Partners has agreed to acquire HS GovTech Solutions, a Vancouver-based software-as-a-service (SaaS) company focused on the state, provincial and local government market in North America.

Under the terms of the deal, HS GovTech shareholders will receive C$0.54 per common share in cash, representing an aggregate transaction value of about C$33.3 million. The purchase price represents a 151.2 percent premium to the closing price of C$0.215 and a 174.1 percent premium to the 20-day volume weighted price of C$0.197 per share on 15 September.

HS GovTech’s securities will not be listed on any public market, and it will cease to be a reporting issuer under Canadian laws, post the transaction.

Directors and executive officers of the company who hold about 8.99 percent of issued and outstanding shares have agreed to vote in favor of the deal.

Banneker Partners has provided a $500,000 non-convertible, unsecured, 10 percent interest bearing loan to HS GovTech to pay expenses related to the acquisition.

“We are excited to partner with HS GovTech’s talented management team to drive continued growth, as we build upon their leading government software platform and bring new solutions to the market,” said Hugh Kirkpatrick, principal at Banneker, in a statement.

Banneker Partners is a private equity firm that invests in enterprise software businesses. The firm is based in San Francisco.

Echelon Capital Markets acted as financial advisor to the company and the special committee. McMillan acted as legal counsel to the company, Stikeman Elliott, and Orrick Herrington & Sutcliffe acted as legal counsel to the purchaser and Wildeboer Dellelce acted as counsel to Echelon Capital Markets.