M&A Summary:

Deal volumes involving Canadian technology businesses were slightly down during the last four quarters ended Q2-19 (L4Q19), with 319 deals announced or closed during the period (93 of which came during Q2-19). This represents a moderate decrease from the 329 transactions announced or closed in 2018. Although there has been a decline in the L4Q19 period, the past three quarters have been quite strong relative to historical periods.

Continuing a trend from prior periods, the popularity and attractiveness of vertical market software businesses servicing niche markets remains strong. These businesses garner a lot of attention due to their sticky revenue base, courtesy of the tailored approached of developers and industry expertise of sales people and account managers. Outlined below are four vertical market software deals from Q2-19.

One of the most interesting deals in this sector is the acquisition of Intelex Technologies by Industrial Scientific. Intelex is a leader in the environmental, health & safety, and quality management space. Announced on the 6^th of June, Intelex is to be acquired for CA$762m (US$570m), one of Canada's five largest tech company exits in the last 10 years and the highest purchase price of any global EHSQ software vendor. It reflects the potential for cloud computing, internet-connected devices and IT/OT systems to revolutionize industrial business models, just as warehouse robotics from Amazon has transformed the retail sector. Furthermore, it demonstrates Canada's continuing development into one of the global leaders in technology.