Investment Summary

Legado Capital, Roynat Capital and Argo Management Group Exits Kivuto Solutions

On February 10, 2023, Valsoft invested in software company Kivuto Solutions from Legado Capital, Roynat Capital and Argo Management Group

Investment Highlights
  • This is Valsoft’s 19th transaction in the Software sector.
  • This is Valsoft’s 3rd transaction in Canada.
  • This is Valsoft’s 2nd transaction in Ontario.

Investment Summary

Date 2023-02-10
Target Kivuto Solutions
Sector Software
Investor(s) Valsoft
Sellers(s) Legado Capital
Roynat Capital
Argo Management Group
Deal Type Add-on Acquisition

Target

Kivuto Solutions

Ottawa, Ontario, Canada
Kivuto Solutions is a provider of advanced digital distribution and management solutions that enable the secure delivery of digital resources to individuals, businesses, and organizations anywhere in the world. Kivuto simplifies the process of delivering any digital good to any market under virtually any terms and conditions. Over 60,000 academic institutions and departments trust Kivuto to manage and distribute software to their students, faculty and staff. The company distributes software and other digital resources to millions of users in over 185 countries. Kivuto Solutions was founded in 1997 and is based in Ottawa, Ontario.

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Investor(S) 1

Investor

Valsoft

Montreal, Quebec, Canada

Category Company
Sector Software
DESCRIPTION

Valsoft is an acquirer of vertical software businesses. Valsoft targets businesses that provide mission-critical solutions in their respective niche or market. Valsoft is based in Saint-Laurent, Quebec.


DEAL STATS #
Overall 25 of 59
Sector: Software M&A 19 of 38
Type: Add-on Acquisition M&A Deals 24 of 51
State: Ontario M&A 2 of 4
Country: Canada M&A 3 of 13
Year: 2023 M&A 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-03-14 Interdev Technologies

Toronto, Ontario, Canada

Interdev Technologies is a provider of Integrated medical reporting software for Emergency Services. Interdev keeps the client's team and clients' data in sync with a suite of medical reporting platforms that eliminate paperwork, save time and consolidate data across different systems. Interdev Technologies was founded in 2000 and is based in Toronto, Ontario.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-06-05 SDS

Cranleigh, United Kingdom

SDS is a software firm specializing in creating bespoke software applications specifically tailored for the residential housing sector. The Company also provides a suite of software tools, it offers exceptional customer support, certified training, and a range of professional services. These services encompass land valuation, viability assessment, project management, consultation, and instructional training services. SDS was founded in 1994 and is located in Cranleigh, England.

Buy -

Seller(S) 3

DESCRIPTION

Legado Capital is an investment firm focused on privately held, well-established small to medium-sized businesses. The Firm typically invests in enterprises generating sales between $10 and $40 million and EBITDA of $0.5 to 5 million. Prospective transaction types include management buyouts and growth financings. Sectors of interest include business services, energy services and equipment, environmental, healthcare services, IT, internet software and services, safety/security, staffing, and test/measurement equipment. Legado Capital is based in Calgary, Alberta.


DEAL STATS #
Overall 1 of 1
Sector: Software M&A 1 of 1
Type: Add-on Acquisition M&A Deals 1 of 1
State: Ontario M&A 1 of 1
Country: Canada M&A 1 of 1
Year: 2023 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-01 Kivuto Solutions

Ottawa, Ontario, Canada

Kivuto Solutions is a provider of advanced digital distribution and management solutions that enable the secure delivery of digital resources to individuals, businesses, and organizations anywhere in the world. Kivuto simplifies the process of delivering any digital good to any market under virtually any terms and conditions. Over 60,000 academic institutions and departments trust Kivuto to manage and distribute software to their students, faculty and staff. The company distributes software and other digital resources to millions of users in over 185 countries. Kivuto Solutions was founded in 1997 and is based in Ottawa, Ontario.

Buy -
SELLER
DESCRIPTION

Roynat Capital is an investment arm within Canada-based bank Scotiabank that looks to provide capital to middle-market businesses for growth and/or liquidity needs. The Firm looks to invest $5 to $20 million for minority stakes in profitable businesses with minimum EBITDA of $2 million. Roynat is sector agnostic and can invest a variety of capital, including common equity, preferred equity, and convertible debt. Roynat Capital is based in Calgary, Alberta.


DEAL STATS #
Overall 2 of 2
Sector: Software M&A 1 of 1
Type: Add-on Acquisition M&A Deals 1 of 1
State: Ontario M&A 1 of 1
Country: Canada M&A 2 of 2
Year: 2023 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-12-05 Sexton Group

Winnipeg, Manitoba, Canada

Sexton Group is a distribution, buying group and transportation business in the building materials industry and is comprised of five businesses including Sexton Group, a Canadian building materials buying group; Kenroc Building Materials, one of Western Canada’s largest distributors of gypsum, roofing and other specialty building materials; Builders Choice Products, a specialty tool distribution company; Sexton Transport, a long haul building material trucking company and Tage Davidsen Drywall Supplies, a gypsum dealer serving contractors in Calgary and surrounding areas. Sexton Group was founded in 1985 and is based in Winnipeg, Manitoba.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-28 St-Methode Bakery

Adstock, Quebec, Canada

St-Methode Bakery is a supplier of healthy, value-add fresh bread products sold under the St Methode brand to consumers through the retail grocery and club channels. St-Methode Bakery was founded in 1947 and is based in Adstock, Quebec.

Buy -
DESCRIPTION

Argo Management Group is a private investment partnership that specializes in making equity investments in profitable manufacturing, distribution, and service companies with annual sales of $5 to $30 million. Argo will invest up to $10 million in transactions to support family successions, management buyouts, corporate spin-offs, recapitalizations, and buy & build strategies. Argo has a geographic focus primarily in the Midwestern US and Southern Ontario Canada. Argo Management Group is based in Chicago, Illinois.


DEAL STATS #
Overall 2 of 3
Sector: Software M&A 1 of 2
Type: Add-on Acquisition M&A Deals 2 of 3
State: Ontario M&A 1 of 1
Country: Canada M&A 1 of 1
Year: 2023 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-01 Kivuto Solutions

Ottawa, Ontario, Canada

Kivuto Solutions is a provider of advanced digital distribution and management solutions that enable the secure delivery of digital resources to individuals, businesses, and organizations anywhere in the world. Kivuto simplifies the process of delivering any digital good to any market under virtually any terms and conditions. Over 60,000 academic institutions and departments trust Kivuto to manage and distribute software to their students, faculty and staff. The company distributes software and other digital resources to millions of users in over 185 countries. Kivuto Solutions was founded in 1997 and is based in Ottawa, Ontario.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2025-03-03 Identity Automation

Houston, Minnesota, United States

Identity Automation is a provider of Identity and Access Management (IAM) software products that help customers automate and manage individual user identities (provisioning and lifecycle management) while providing attribute-based and role-based user authentication, authorization, and access privileges within and across on-premises and cloud-based enterprise systems. Identity Automation was founded in 2004 and is based in Houston, Texas.

Sell $215M