M&A Deal Summary

IBM Acquires Varicent

On April 13, 2012, IBM acquired internet software and services company Varicent from FTV Capital and EdgeStone Capital Partners

Acquisition Highlights
  • This is IBM’s 8th transaction in the Internet Software and Services sector.
  • This is IBM’s 12th transaction in Canada.
  • This is IBM’s 10th transaction in Ontario.
Investment Fate
  • Varicent was divested to a consortium of buyers in 2019.

M&A Deal Summary

Date 2012-04-13
Target Varicent
Sector Internet Software and Services
Buyer(s) IBM
Sellers(s) FTV Capital
EdgeStone Capital Partners
Deal Type Add-on Acquisition

Target

Varicent

Toronto, Ontario, Canada
Varicent is a provider of Smart SPM (sales performance management) cloud-enabled software for mid-market and enterprise companies in any industry. Its augmented intelligence-powered platform enables customers to quickly and easily see and address sales trends, problem areas, and opportunities, by predicting outcomes and prescribing actions to optimize revenue. Varicent pioneered incentive compensation and sales performance software helps customers manage highly complex compensation plans, territories and revenue goals. Varicent was founded in 2003 and is based in Toronto, Ontario.

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Buyer(S) 1

Buyer

IBM

Armonk, New York, United States

Category Company
Founded 1911
Sector Information Technology
Employees270,300
Revenue 62.8B USD (2024)
DESCRIPTION
Entrance to IBM's corporate headquarters in Armonk, New York.
Entrance to IBM's corporate headquarters in Armonk, New York.

IBM is a global provider of information technology products and services. IBM's products and services include IT infrastructure and business process services, cloud computing, business analytics, and enterprise software. IBM was formed in 1911 and is based in Armonk, New York.


DEAL STATS #
Overall 115 of 204
Sector: Internet Software and Services M&A 8 of 25
Type: Add-on Acquisition M&A Deals 100 of 181
State: Ontario M&A 10 of 10
Country: Canada M&A 12 of 13
Year: 2012 M&A 3 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-31 Worklight

Shefayim, Israel

Worklight Ltd. is a provider of mobile software for smartphones and tablets.

Buy $70M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-25 Vivisimo

Pittsburgh, Pennsylvania, United States

Vivisimo, Inc. is a provider of federated discovery and navigation software that helps organizations access and analyze big data across the enterprise.

Buy -

Seller(S) 2

SELLER

FTV Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1998
PE ASSETS 6.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

FTV Capital is a multi-stage private equity firm focused on providing capital to high-growth companies. FTV generally seeks to invest in software, business services, and financial services companies which enable financial institutions to expand and to operate more efficiently. Investment proceeds are typically used to fund rapid organic growth, provide shareholder liquidity, pursue add-on acquisitions, or acquire divestitures. FTV prefers to act as the lead or control investor and targets equity commitments of $10 to $85 million per transaction. FTV Capital was established in 1998 and was formerly known as FTVentures. FTV Capital is based in San Francisco with an additional office in New York City.


DEAL STATS #
Overall 21 of 62
Sector: Internet Software and Services M&A 2 of 12
Type: Add-on Acquisition M&A Deals 13 of 38
State: Ontario M&A 1 of 1
Country: Canada M&A 1 of 1
Year: 2012 M&A 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-01 Utopia

Mundelein, Illinois, United States

Provides enterprise data management solutions.Utopia offers many data-related service solutions to meet your data needs. Our core competency is in data solutions, and we want to help you get the most out of your enterprise by using trusted data. We know the value of data quality, and have the knowledge and experience to maximize the benefits of your data assets.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-06-07 Shoutlet

Madison, Wisconsin, United States

Shoutlet, Inc. is a cloud-based social marketing platform that empowers brands to build meaningful customer relationships that drive real value.

Buy -
SELLER

EdgeStone Capital Partners

Toronto, Ontario, Canada

Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 2.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

EdgeStone Capital Partners, Inc. is a private equity firm that targets middle market companies located in the Canada. The Firm targets to invest in companies with an EBITDA range $10 - $50 million and Enterprise value of $50 - $250 million. It seeks to invest in equity and equity related instruments and seeks to hold majority position and board seat in portfolio companies. Specific areas of interest include light manufacturing, business services, and consumer services. Type of transaction includes MBO, recapitalizations, growth capital, divestiture or non-core business and succession planning. EdgeStone Capital Partners, Inc. is based in Toronto, Ontario.


DEAL STATS #
Overall 22 of 25
Sector: Internet Software and Services M&A 3 of 4
Type: Add-on Acquisition M&A Deals 16 of 17
State: Ontario M&A 13 of 14
Country: Canada M&A 17 of 18
Year: 2012 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-21 New Food Classics

Calgary, Alberta, Canada

NFC custom designs and manufactures private label as well as branded meat, seafood, meatless and poultry value added products for retail and foodservice accounts. The Company?s products include frozen, fresh, ready-to-cook and pre-cooked offerings. NFC?s innovative product development and efficient manufacturing position the Company for continued growth in the North American market.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-04-06 Solace Systems

Ottawa, Ontario, Canada

Solace Systems provides market-leading technology for real-time, event-based movement of data. Solace’s proprietary ‘event mesh’ platform securely and reliably moves event data into, out of, and across enterprise applications. Solace Systems was founded in 2001 and is based in Ottawa, Ontario.

Sell -