Chilliwack, BC-based HS GovTech Solutions has been acquired by a British Columbia subsidiary of United States private equity firm Banneker Partners.
The closing of the transaction comes roughly one week after HS GovTech received approval from a BC court for Banneker Partners to acquire all of the company’s issued and outstanding common shares for $0.54 per share. According to a September statement issued by the company, this would value the deal at $33.3 million.
“This partnership will allow us to invest even more into new features and products that will further our mission of helping government agencies operate more efficiently.”
HS GovTech, which previously traded on the Canadian Securities Exchange under symbol HS as well as the Frankfurt Stock Exchange and OTC, has delisted its shares from those exchanges following the transaction.
When the all-cash deal was announced earlier this year, Banneker Partners said it planned to partner with HS GovTech’s management team to continue growing the company, which includes building on the company’s government software platform and bringing new solutions to market.
“This partnership will allow us to invest even more into new features and products that will further our mission of helping government agencies operate more efficiently by going beyond data management,” HS GovTech CEO Silas Garrison said of the deal in September.
Founded in 1998, HS GovTech has developed various platforms aimed at helping government agencies operate more efficiently. These platforms offer inspection, information, communication and data management capabilities.
“HS GovTech’s robust technology platform, innovative product portfolio and committed team have proven themselves in delivering mission-critical tools to agencies supporting our communities.” Hugh Kirkpatrick, principal at Banneker, said in a September statement.
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GovTech refers to solutions that enhance the operations and services of government agencies. It encompasses a wide range of applications, from digital platforms that streamline administrative processes and improve citizen engagement, to advanced cybersecurity measures protecting sensitive data.
In recent years, governments and other public sector agencies have increasingly looked to solutions in software, cybersecurity, and data management to optimize their operations. The global GovTech market is projected to reach over $160 billion USD by 2031.
In Canada, key startups in the sector include Toronto-based Thentia, DisGovr Canada, and Bonfire Interactive (acquired in 2018 for $140 million). HS GovTech claims its platforms have been deployed in over 800 state and local government organizations across North America.
HS GovTech is not the only Canadian tech company that has gone private this year. Several other companies that went public during the pandemic boom have seen their stock prices fall and fail to recover amid the tech downturn.
Earlier this month, Toronto-based Q4 Inc. entered into a $257-million CAD buyout agreement with Sumeru Equity Partners that will take it private. Vancouver’s BBTV and mCloud also delisted from public exchanges under similar conditions.
Feature image source Unsplash. Photo by Thomas Lefebvre.
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