mdf commerce inc. (TSX:MDF) has entered into an arrangement agreement to be acquired by funds managed by the global investment powerhouse KKR in an all-cash transaction valued at $189 million.
mdf commerce, celebrated for its SaaS solutions that boost commercial interactions, has carved a niche for itself by facilitating billions in transactions annually.
The company’s notable eProcurement platform in North America is a testament to its market strength, catering to over 6,500 government agencies and more than 650,000 suppliers across Canada and the United States.
This acquisition by KKR not only reflects a vote of confidence in mdf commerce’s capabilities but also underscores the investment firm’s commitment to fostering technology innovation within the public sector’s procurement processes.
Pierre Chadi, Chairman of the mdf commerce board, highlighted the transaction as a culmination of a rigorous strategic review, offering shareholders an “attractive premium” and “certainty of value.”
Luc Filiatreault, President and CEO of mdf commerce, echoed the sentiment, expressing enthusiasm over the partnership with KKR to amplify the company’s market presence and enhance its service offerings.
KKR’s investment is driven through its Ascendant Strategy, focusing on mid-market businesses in North America, signifying a strategic alignment with mdf commerce’s vision and growth ambitions.
John Park, a Partner at KKR, lauded the achievements of mdf commerce’s team and expressed eagerness to integrate the company into KKR’s portfolio, especially highlighting the potential for expanding digital solutions in government sectors.
The transaction, valued at a considerable premium over the recent share prices, is a strong indicator of mdf commerce’s value proposition and its alignment with KKR’s strategic investment philosophy.
With unanimous support from the board and major shareholders, the deal is set for completion in the second quarter of the calendar year 2024, pending requisite shareholder and regulatory approvals.
This move is expected to significantly benefit mdf commerce’s stakeholders, including its approximately 650 employees, who will have the opportunity to participate in an equity ownership program post-transaction.
This approach aligns with KKR’s history of promoting employee engagement and ownership in its portfolio companies, which has been a cornerstone of its investment strategy.
The transaction underscores a broader trend in the technology sector, where strategic acquisitions are increasingly seen as pivotal for scaling innovative platforms and accelerating growth in a competitive market landscape.
For mdf commerce, the partnership with KKR opens new avenues for expansion and reinforces its position as a leader in digital commerce technologies. – PEVCJournal.com