Capital markets access platform Q4 has agreed to be acquired by an entity controlled by technology-focused investment firm Sumeru Equity Partners in a deal worth nearly C$257m ($186m).
Under the terms of the definitive agreement, Sumeru Equity Partners will pay C$6.05 ($4.38) per common share to take full ownership of Q4.
Besides, the funds associated with Ten Coves Capital, Q4 CEO, and president Darrell Heaps, Q4 director Neil Murdoch, and another individual shareholder will exchange a total of 13.7 million common shares for equity interests in Sumeru Equity Partners.
The consideration represents about 36% premium to Q4’s closing price on the Toronto Stock Exchange (TSX) on 10 November 2023.
Following the closing of the deal, Q4 will become a privately held company and its common shares will no longer be listed on TSX.
Based in Canada, the publicly listed company is engaged in transforming the communication and engagement between issuers, investors, and the sell-side via its capital markets access platform.
The company’s platform enables interactions across the capital markets through virtual events, investor relations (IR) website products, solutions, engagement analytics, shareholder and market analysis, IR customer relationship management (CRM), surveillance, and environmental, social, and governance (ESG) tools.
Heaps said: “Q4 has become a central force in how thousands of public companies communicate and engage with the market.
“The Q4 Platform, fuelled by innovative technology, data, and insights, empowers our customers to communicate their investment story to the world. It enables them to identify and target investors strategically, helping them build a strong shareholder base.”
Subject to the receipt of shareholder and other customary approvals, the deal is anticipated to be completed in Q1 2024.
Osler, Hoskin & Harcourt serves as legal advisor to Q4 while Raymond James is the exclusive financial advisor to the company’s committee of independent directors.
Gibson, Dunn & Crutcher and Stikeman Elliott are serving as legal advisors to Sumeru Equity Partners. National Bank Financial is the investment firm’s exclusive financial advisor.