StartupNorth

Category: Exits

  • Radiant Core acquired by Zerofootprint

    Radiant CoreRadiant Core has been acquired by Zerofootprint Software. Radiant Core was a Toronto-based web design and development shop led by Jay Goldman and Mike Glenn.  Zerofootprint is a Toronto-based company that “provides information, products and services for the global network of consumers and businesses who wish to reduce their environmental impact”. Radiant Core is best known for the visual design of Firefox 2, and has been recognized by Taschen as a leading web design agency. Jay and I have presented together at Web2Expo, FSOSS and Ignite. We’re also co-conspirators in this whole DemoCamp thing.

    zerofootprintsoftwareZerofootprint has been a client of Radiant Core. Radiant Core designed, built and launched the Zerofootprint Calculator Facebook application (add the application). Zerofootprint has a laudable goal to empower people and change their collective footprint.

    Our goal is to mobilize and empower large groups of individuals and organizations worldwide, to reduce their collective carbon and ecological footprint. We do this by harnessing the power of social networking, the Internet and software.

    Why acquire a consulting firm? It’s a great acquisition method, Ron and the Zerofootprint team really managed their risk by engaging Radiant Core to evaluate capabilities, working styles, and the quality of team deliverables. In Radiant Core they get a world-class design firm with strong experience designing and building accessible web and social media applications. Radiant Core also has deep roots in participating and building vibrant, open creative communities. Jay and Mike have been involved with TorCamp, DemoCamp, TransitCamp, FacebookCamp/Facebook Developer Garage and other activities here in Toronto. The Zerofootprint team had the opportunity to evaluate the Radiant Core team and their ability to deliver on the design and development of the Zerofootprint Calculator Facebook application.  Zerofootprint and Radiant Core have worked together and can begin to have informed conversations about cultural compatibility and employee integration based on real experiences.

    No financial details have been released.

    What does this mean for Toronto?

    • One less world-class web design shop.
    • One more awesome software startup, now with world-class web development team!

    It means that Zerofootprint just acquired one of the best web development shops in Canada to be their product team. Running a consulting business is a tough slog. It’s a linear growth business, i.e., you grow revenues by increasing the number of billable hours, increasing the billable rate, or increasing the number of people. It hopefully gives Jay and Mike an exit. It gives Zerofootprint a huge accelerator to continue to build products and services that will help to change the world.

    Interested in what it really means, try calculating your footprint at http://toronto.zerofootprint.net/ and see how Zerofootprint is working with the City of Toronto to create a greener city.

  • Spring Acquisitions: Meriton Networks & Sirific Wireless

    As promised… we have a couple spring acquisitions:

    Meriton Networks, an optical networking infrastructure company based in Ottawa, has been acquired by Xtera Communications. Meriton had taken venture financing from: Desjardins Venture Capital Group, Newbury Ventures, Nomura International, Primaxis Technology Ventures, RBC Capital Partners, VantagePoint Venture Partners, VenGrowth Capital Partners, Skypoint Capital. The acquisition price has not been disclosed.

    Sirific Wireless, a fabless semiconductor company specializing in CMOS RF transceivers based in Waterloo, has been acquired by Icera. Sirific had taken venture financing from: Agilent Technologies, BDC, Celtic House, GrowthWorks, Hunt Ventures, Intel Capital, Solowave Investments, TD Capital, and Tech Capital. The acquisition price has not been disclosed.

    Hat tip to Mark McQueen of Wellington Financial, who described the exits as follows:

    Although details weren?t announced, these don?t feel like successful exits. Probably somewhere in that middle of pack for that vintage. Neither company had announced the kind of revenue generating customer traction (think Dragonwave and Clearwire) that drives a home run. And they both raised tens of millions over 8 or so years. Yes there was value built (which the strategics can afford to fund and harvest) but after that long these are deals where the clock ran out.

    Sounds like a little portfolio spring cleaning to me.

  • Transcontinental acquires ThinData

    thindata_logo.gifThinData, a permission-based email marketing company based in Toronto, was acquired by Transcontinental today. The terms of the deal were not disclosed

    ThinData has a business model which is similar in many ways to that of CakeMail, who are based in Montreal, in that they often team up with agencies and other service providers who deliver the final product to the end-user.

    ThinData works with leading marketers and advertising agencies in Canada, and has received numerous awards and accolades for its innovative campaigns and its email marketing and online database management platform. ThinData, with its approximately 60 employees, will become part of the Premedia Group at Transcontinental under Nicky Milner’s responsibility.

    What is most interesting is that this acquisition was born out of previous work that the two companies have done together. I am sure that Transcontinental was more than happy to test the company first as a customer before approaching them about the acquisition. Just one of many reasons to treat all of your customers well.

    This all-Canadian marriage also shows that there are opportunities and potential exits right here in Canada.

  • Novell acquires PlateSpin for $205M

    Novel PlateSpin LogoPlateSpin, based in Toronto, has entered into a definitive agreement to be acquired by Novell for $205M. The company, which makes a suite of solutions for the server virtualization market, was founded (for the second time) in 2003. You see, PlateSpin is a restart.

    PlateSpin1 was founded in 2000, raised $1.9M in 2002, and closed up shop in 2003. PlateSpin2 was restarted with new management in 2003, raised $3.5M from Toronto venture funds Covington Capital, Castle Hill Ventures, Skylon Capital, and Four Quarters, and another $7M in 2005 from Insight Venture Partners of New York.

    Word is that PlateSpin2 had trailing revenue of $20M, and that Citrix, Microsoft, and Unisys were all vying for the prize. Congrats to PlateSpin and its backers on the Novell acquisition. We’re chalking this up as a win. While it doesn’t put PlateSpin on the road to VMware glory ($22B, P/S 16.84) it is a solid exit for all involved… especially the funds. I am guessing they cut a nice slice of pie as part of the restart.

  • JobLoft makes an exit

    JobLoft2JobLoft, the Toronto-based company at the center of the Dragon’s Den soap opera last year has finally been paid their due. In a move that both shows how much you do not want investment from the Dragon’s Den, and which shows how a little hard work pays off, JobLoft is being acquired by OnTargetJobs.

    OnTargetJobs runs a network of job boards including Hcareers, which caters to the hospitality industry. Our guess is that JobLoft’s map functionality will be brought to Hcareers. OnTargetJobs is backed by Warburg Pincus. No word yet on the acquisition details, but we’ll try and scoop TechCrunch.

    Congrats to the JobLoft crew on a successful exit.