Spotlight

An archive of past spotlight issues.

 

The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry. Here is an archive of past

Softchoice Files for IPO

Announcement Details

  • Softchoice Corporation, a leading technology solutions provider in North America, announced yesterday that it has filed a preliminary prospectus for an initial public offering.
  • Softchoice’s common shares will be traded on the Toronto Stock Exchange, although the number of shares and price have not yet been disclosed.
  • Before Toronto-based Softchoice was taken private in 2013 by Birch Hill Equity Partners for $412 million, martinwolf advised it in three transactions that broadened its solutions and services offerings and grew its presence in the United States.
  • The offering is being made through a syndicate of underwriters led by TD Securities Inc. and Goldman Sachs Canada Inc.
  • Other financial institutions involved include RBC Capital Markets, National Bank Financial Inc., CIBC Capital Markets, Scotiabank, BMO Capital Markets, Cormark Securities Inc., Laurentian Bank Securities Inc., ATB Capital Markets Inc., Raymond James Ltd. and INFOR Financial Inc.

 

martinwolf Analysis

  • Largest in Years: Softchoice is one of the largest supply chain companies to announce an IPO in recent memory. In 2020, the powerhouse solution provider reported $836.8 million in net sales and $22.9 million in income from operations.
  • No SPAC, No Problem: Despite early 2021 popularity, SPACs have cooled off as the crowded space has seen companies settle for smaller targets. Softchoice made an informed decision to pursue an IPO, which will allow for a more knowledgeable shareholder base.
  • Microsoft Partner of the Year: Softchoice was named 2020 Microsoft Canada Partner of the Year. As Microsoft partners have themselves become more desirable, so too have Softchoice and its peers.
  • Private to Public: IT companies have in the last several years trended toward private exits, rather than public offerings. In this case, Softchoice is pursuing a hybrid approach – Birch Hill will retain ownership post sale, but this offering will allow Softchoice to additionally tap into the public equity markets.

 

For more information about this transaction, click here to read the press release from Softchoice.

 

 

martinwolf was not the advisor in this transaction. 

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