TeraXion, a Québec City-based designer and maker of photonic components, has finalized a succession plan and restructured its share capital.
The deal was backed by an undisclosed minority investment from the growth equity group of BDC Capital. BDC’s Growth and Transition Capital division also partnered with CIBC to help the company with its bank refinancing.
TeraXion said CEO Alain-Jacques Simard will assume the role of executive chairman, while CFO Richard Kirouac will retire but continue to hold a board seat. Simard and Kirouac are both co-founders. Ghislain Lafrance will be promoted to CEO.
Established in 2000, TeraXion serves businesses in the light and heavy manufacturing, telecommunications, medical equipment, aerospace and defence industries.
TeraXion finalizes succession plan with support from BDC Capital and CIBC
QUÉBEC CITY, Aug. 27, 2019 /CNW Telbec/ – Backed by a solid performance in the past few years, Quebec-based optical component company TeraXion is restructuring its share‑capital and finalizing its succession plan. BDC Capital has acquired a minority share of the company through its Growth Equity division, while its Growth and Transition Capital division, a partner of TeraXion since 2016, is collaborating with CIBC to help the company with its bank refinancing.
TeraXion is also announcing changes for two of its co-founders. Alain-Jacques Simard, President and CEO, will take on the role of Executive Chairman of the Board of Directors, and Richard Kirouac, CFO, will retire and continue to sit on the Board. Ghislain Lafrance, current Vice-President of Commercialization and Technology, will be promoted to CEO.
“This new partner agreement with BDC Capital and CIBC will reinvigorate the resources and energy that TeraXion needs to leverage in order to seize the opportunities before it,” said Ghislain Lafrance. “I am incredibly proud to be taking the reins for a company I’ve contributed to for nearly 20 years.” According to Alain-Jacques Simard, “aside from providing TeraXion with access to a quality growth partnership, this restructuring will provide our employees with excellent opportunities for growth.”
Jean Bédard, Partner, Growth Equity at BDC Capital, also has a favorable outlook on the future. “TeraXion is an innovative company in a very promising sector that does the majority of its business abroad, where it has an excellent reputation. Its potential for growth remains high. This investment is right in line with our mandate to support successions of leading Canadian technology companies, and TeraXion’s succession has been exceptionally well planned.”
David Bouchard, Director and Team Lead, CIBC Commercial Banking, isn’t shy about how proud he is. “We’re confident that the current management team will continue to drive the growth of this global player in the optics industry, and CIBC is enthusiastic about its plans to support TeraXion in its goals and ambitions.”
TeraXion is a leader in the manufacturing of innovative photonic components that incorporate fiber Bragg gratings, low noise lasers and integrated photonics. Its unique expertise and its ability to develop and transform technology into leading-edge product make it a prime partner for its clients: key companies in light and heavy manufacturing, telecommunications, medical equipment, aerospace and defence. For further information, please visit teraxion.com
About BDC Capital
BDC Capital is the investment arm of BDC- Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.
CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://cibc.mediaroom.com/.
For further information: Marielle Milot, Marketing and Communications Specialist, TeraXion, Phone: 418‑658‑9500, Ext. 507, firstname.lastname@example.org