Momentum Technologies, a Québec City-based information technology consulting services provider specializing in database technologies, has raised $2 million in mezzanine financing from BDC Capital.
BDC invested through its growth and transition capital group.
The funds raised will support the company’s global growth strategy and help prepare it for a management succession facilitated through stock buybacks.
A portion of the proceeds are currently being used to develop a new version of Manitou, a professional services automation solution manufactured by Momentum.
Established in 2003, Momentum is led by President Michel Ganache.
Momentum Technologies Receives $2 Million in Financing from BDC Capital
QUEBEC CITY, February 20, 2019 – BDC Capital’s Growth and Transition Capital division provided mezzanine financing of $2 million to Quebec City’s Momentum Technologies in order to support its growth and prepare its succession. Started in 2003, Momentum is an IT consulting services firm that specializes in database technologies. Its expertise in Oracle is such that, over the years, the company has become the supplier of choice for the Government of Quebec’s databases. For the past six years, Momentum has been recognized by Deloitte as one of Canada’s Best Managed Companies. The company attributes a large part of its operating success to enterprise resource planning software that it developed for its own needs and that it currently markets in the form of a SaaS solution called Manitou to other professional services firms.
One portion of the BDC Capital financing is currently being used to develop the new version of Manitou. Some of the financing has also been earmarked to fund the application’s marketing activities. Lastly, another portion has been allocated for stock buybacks in connection with the company’s succession plan.
For BDC Capital, this transaction was spearheaded by Charles Blouin, Director, Technologies Group, Growth & Transition Capital, in Quebec City. “Momentum contains two entities in one: a computer services firm that is preparing its management succession and a SaaS firm that is growing,” explains Blouin. “Our financing meets the objectives of both these business plans: it supports the orderly transfer of the company as well as its continued growth.”
“We’re delighted to welcome BDC Capital as a strategic financing partner,” said Michel Ganache, President of Momentum Technologies. “This financing will enable the pursuit of two major directions for our development: the expansion of our Manitou solution in markets outside Quebec and the implementation of a new remote development service offering in Africa. This latest project, which will be led by our succession team, has already resulted in the opening of a first office in Tunis, where we are expecting substantial growth over the coming year.”
About Momentum Technologies
Momentum Technologies has been reinventing the consulting services sector for more than 15 years. Its core values of respect, expertise and team spirit have ensured that Momentum hires only the best employees in each of its areas of expertise. A global hiring pioneer, Momentum now has more than 150 employees from over 25 countries, thereby creating a rich and inclusive workplace. The company is also committed to helping every employee progress in their career and provides them with all of the necessary help so that they can achieve their objectives.
About BDC Capital
BDC Capital is the investment arm of BDC, the only bank in Canada dedicated exclusively to entrepreneurs. With more than $3 billion under management, BDC Capital serves as a strategic partner to Canada’s most innovative firms. It offers a full range of equity and financing solutions, for both startups and transitioning companies alike. BDC Capital helps Canadian entrepreneurs who want to scale their businesses into global champions. Visit bdc.ca/capital.
Media relations, BDC
Sophie Lapointe, M.Sc.
Business Strategy Director
418-681-6363, ext. 2242