Ottawa-based workflow and data collection platform, TrueContext, has entered into an agreement to be acquired and taken private by Boston-based investment firm Battery Ventures.
TrueContext shareholders are set to receive $1.07 per share as part of the transaction, valuing the company’s total equity at approximately $150 million on a fully diluted basis. This purchase price reflects an almost 40 percent premium on the company’s $0.77 TSXV closing price on March 8.
The deal is anticipated to close in the second quarter of 2024.
Co-CEO and founder of TrueContext, Alvaro Pombo, expressed his excitement about collaborating with Battery to accelerate TrueContext’s growth in the field intelligence space.
“The transaction is a result of a thorough strategic review process conducted by a special committee of the board of TrueContext with its financial advisors, with a view to maximizing value for shareholders,” stated special committee chair Catherine Sigmar.
Founded in 2001 as ProntoForms, TrueContext provides a no-code workflow platform for field services such as repairs and maintenance. The platform facilitates the dispatch of jobs to workers along with attached data and collection tools like notes, pictures, and geolocating. Furthermore, the platform supports various integrations such as ServiceNow, Salesforce, and Dropbox.
The firm boasts a customer base of over 100,000, utilizing its platform for tasks ranging from asset inspection and compliance to installation, repair, maintenance, and health and safety. Notable clients include Shell, Chevron, and DHL.
TrueContext underwent a rebranding in November, changing its TSXV ticker from PFM to TCXT, aligning its company identity more closely with its product. Publicly traded since 2007, the company’s peak share value reached $1.40 in January 2021, subsequently dipping as low as $0.56 per share in the past year.
TrueContext joins a growing list of Canadian tech companies opting to go private. Recently, Montréal-based e-commerce solutions company MDF Commerce announced its decision to go private after entering a definitive agreement to be acquired by New York-based investment firm Kohlberg Kravis Roberts (KKR). In February, Q4 Inc. was delisted from the TSX following a $257-million CAD buyout agreement with Sumeru Equity Partners, while BBTV Holdings and Dialogue Health Technologies underwent similar transactions in 2023. Several other companies, including Farmer’s Edge, mCloud, and Mednow, have also sought buyers to take them private.
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By Proptechbuzz
By Ravi Kumar
