Veteran private equity investment firms VERTU Capital and BDC Capital partner to acquire Firmex, Inc., from former investment entity Novacap.
Exciting news for the virtual data industry was unveiled this week when one of the companies-to-watch in the industry, Firmex, which was formerly held by Novacap, announced that it has been acquired by VERTU Capital and BDC Capital.
The Bank of Montreal provided the debt financing for the acquisition. Firmex had financial advising from RBC Capital Markets.
Virtual data rooms, or VDRs, represent one of the most rapidly growing industries in the world-wide marketplace. VDRs and their counterparts, secure document sharing solutions (SDSS), make it possible for safely store and share information both for daily business operations and while transacting mergers and acquisitions.
Firmex.com, a VDR/SDSS provider headquartered in Toronto, Ontario, Canada, has long been considered first a breakout success story and now a resilient and ever-expanding global leader in the worldwide VDR/SDSS marketplace.
At least 120,000+ companies in at least 80 countries worldwide currently rely on Firmex for their virtual data room and secure document sharing solutions needs. Many of Firmex’s global clientele reads like a virtual who’s-who across industries, from financial to legal, investments to major corporations.
What has made Firmex such an attractive acquisition? In part it has been their history of providing exemplary customer service, as a result of which many clients have remained with the company in an otherwise notoriously fickle industry. And in part it has been Firmex’s robust SaaS platform, which delivers intuitive operation and high-powered security in an age of continual international news headlines about data hacks.
In 2018 alone, Firmex clients successfully shared a high volume of highly sensitive data and documents through the creation of more than 15,000 new private VDRs worldwide. Data transfers included mission-critical business processes, legal and compliance due diligence documentation, confidential litigation records and more.
Lisa Melchior, VERTU Capital founder, was quoted as saying that it was Firmex’s own continued insistence on unparalleled customer service combined with a high-quality SaaS product that sold her on the acquisition. Ms. Melchior stated her intention to support the Firmex team as it continues to build its marketshare and create a sustainable business model in the global marketplace.
Claude Miron, BDC Capital’s VP of Growth Equity, expressed excitement about the opportunity to join forces with VERTU to acquire Firmex. Among reasons cited for choosing to participate in the acquisition, Mr. Miron cited Firmex’s upcoming growth plans, each of which will be initiated against a backdrop of solid business management skill. Mr. Miron also pointed out that BDC Capital has set its own internal goal of increasing support to female-led and run businesses, especially ones in the technology sector. This also makes VERTU Capital a perfect choice as a partner in this acquisition.
Joel Lessem, CEO and Co-founder for Firmex, reinforced both Ms. Melchior’s and Mr. Miron’s sentiments, sharing their company’s continued commitment to both exceptional product support and a superior suite of SaaS products. Mr. Lessem further added that the new partnership supports the company’s ultimate goal to re-enter the marketplace stronger, smarter and better positioned for global growth.
Prior to the acquisition, Firmex fell under the Novacap TMT IV umbrella. Yong Kwon, Partner with private equity firm Novacap, expressed their satisfaction with Firmex’s performance and good wishes for the new partnership.
VERTU Capital Overview
Canada-based VERTU Capital is a private equity investment firm headed up by founder Lisa Melchior. The company targets high-profile late stage growth-oriented companies with solid management in place. To learn more, visit www.vertucapital.ca.
BDC Capital Overview
BDC Capital is Canada’s sole bank with an exclusively entrepreneurial focus. With a $3 billion and growing portfolio, BDC Capital maintains an interest in all life cycle stages, from seed investing to transition capital. To learn more, visit bdc.ca/capital.
Since its launch in 1981, Novacap has maintained a leading role in identifying and partnering with entrepreneurs and invest-ee companies. Assets to date are valued at well over $2.3 billion, with more than a billion of that coming from the company’s TMT IV and TMT V funds alone. To learn more, visit www.novacap.ca.
Firmex, Inc., Overview
Firmex is a SaaS provider of virtual data rooms and secure document sharing solutions to a growing cohort of companies worldwide. The company’s simple, streamlined and safe subscription service continues to reap acclaim and attract new clients and investors on a global scale. To learn more, visit www.firmex.com.