E-Commerce Acquisitions in Canada

AutoScout24 has signed an agreement to acquire TRADER Corporation (TRADER Canada) from Thoma Bravo, with funds affiliated with existing majority shareholder Hellman & Friedman making an incremental equity investment in AutoScout24. The acquisition expands AutoScout24's presence into Canada and adds TRADER's leading marketplaces (AutoTrader.ca, AutoHebdo.net), dealer software (AutoSync), lender portal (DealerTrack) and collateral management services to its product set.

Relationshop has finalized a merger combining Toronto-based Mercatus Technologies and Tel Aviv-based Stor.ai into a single company called Mercatus, which will operate as a wholly owned subsidiary of Relationshop. The combined business unifies Mercatus’ enterprise grocery eCommerce platform with Relationshop’s data-driven shopper engagement and personalization capabilities to deliver an integrated connected-commerce solution for regional grocers and independents globally.

On January 4, 2023, Sleep Country Canada Holdings Inc. closed the acquisition of substantially all assets of Silk & Snow Inc. for approximately C$24 million in cash plus up to C$19.45 million in contingent cash consideration. The deal brings a fast-growing Toronto-based direct-to-consumer sleep and lifestyle brand into Sleep Country’s portfolio to expand its DTC e-commerce capabilities and product offering.

On November 4, 2022 KCM Capital Partners and Prairie Capital (Prairie Capital VII), in partnership with Royal Distributing management, completed a recapitalization of Royal Distributing, an omnichannel Canadian powersports aftermarket retailer and distributor. The transaction will support company-building initiatives — including investments in people, sales & marketing, technology and infrastructure — and fund add-on acquisitions to accelerate growth.

Bassett Furniture Industries, Inc. acquired the capital stock of Noa Home Inc., a Montreal-based mid-priced e-commerce furniture retailer with operations in Canada, Australia, Singapore and the U.K. The purchase included approximately C$2.0 million in cash to the co-founders and C$5.7 million to repay debt; Bassett said the deal will expand its digital commerce capabilities and help attract digitally native consumers.

Pantastic Networks acquired LimeSpot Solutions Inc., an AI-powered ecommerce personalization application used by thousands of Shopify and BigCommerce merchants. The deal adds LimeSpot's recommendation, segmentation and Google Shopping optimization products to Pantastic's suite, expanding its capabilities across the customer journey for independent ecommerce brands.

Pantastic raised $18 million in equity and debt financing led by B Capital Group with participation from Commerce Ventures and used the proceeds to acquire two post-purchase Shopify tools: Canada-based UpOrder and CartHook Post Purchase Offers. The deals expand Pantastic’s post-purchase product suite to accelerate commercial growth and product development; Howard Morgan of B Capital Group will join Pantastic’s board.

WeCommerce Holdings Ltd. signed a definitive agreement to acquire substantially all of the assets of Archetype Themes Inc. for US$20.0 million upfront plus contingent consideration of up to US$12.0 million (total consideration up to US$32.0 million). Archetype is a leading designer of premium Shopify themes (used by over 60,000 merchants); the acquisition expands WeCommerce's portfolio of Shopify-focused technology businesses and theme offerings.

Circle Graphics, a portfolio company of H.I.G. Capital, has acquired Workshop X, Inc. dba Canvaspop, an Ottawa-based online retailer of personalized wall décor. The add-on acquisition expands Circle's portfolio of direct-to-consumer online properties and aims to accelerate Canvaspop's product, service and international growth.

BGE Indoor Air Quality Solutions (BGE) acquired Clean Air Club Incorporated, a subscription-based direct-to-consumer e-commerce business that delivers replacement home furnace filters. The acquisition closed on June 30, 2021; Clean Air Club co-founders Damon Atwood and Lauren Mintoff will remain involved as advisors during the transition. BGE said it will continue operating the Clean Air Club in Edmonton and expand the business into additional geographic markets.

Canadian Business Growth Fund (CBGF) completed a growth equity investment in MaxSold Incorporated to accelerate the downsizing and estate-sale marketplace’s growth and cross-border expansion. The funding will support market expansion, product investment and increased scale across Canada and the United States.

Austin-based private equity firm Tritium Partners invested CAD 33 million in Vancouver-headquartered ToursByLocals to accelerate product, technology, marketing and hiring as the private tours marketplace scales. The investment is growth capital intended to support the company's global marketplace of more than 4,100 guides operating in 160+ countries.