A weaker dollar makes the Canadian tech takeover targets on our list more appealing to their U.S. counterparts
SmallCapPower | November 17, 2016: With the recent announcement of GE buying Vancouver startup Bit Stew for $153mm, one may wonder if a weaker Canadian dollar has made technology companies north of the border more appealing. The Canadian tech takeover targets on our list today have seen revenues increase by 81% at the bare minimum yet have seen year-to-date valuations drop by 32% to 50%. Even though these names are operating at a loss, a larger organization may believe they can turn them profitable under their management and expanded network.
Spectra7 Microsystems Inc. (TSE:SEV) – $0.31
Spectra7 Microsystems Inc. is a Canada-based consumer connectivity company that delivers bandwidth, speed and resolution to enable industrial design for consumer electronics manufacturers in virtual reality (VR), augmented reality (AR), wearable computing, data centers and ultra-high definition (HD) displays. The Company operates through the semiconductors segment. The Company’s VR products include the VR7050. AR-Connect is an AR interconnect product line. AR-Connect enables AR glasses to connect to a smart phone, processing device or a desktop graphics processing unit (GPU)/laptop processing unit, with a single link. Its DreamWeVR product line includes over four chips, VR-specific connectors and over three head-mounted display (HMD) interconnect configurations.
- Market Cap: $44.81(mm)
- Total Revenue (LTM, Default, Millions): $10.19
- YTD PCT Change: -32.2%
- PoP % Chg (1LTM) in Revenue (LTM, CAD): 81%
DataWind Inc. (TSE:DW) – $1.23
DataWind Inc. (DataWind) is a Canada-based provider of Internet connectivity for the emerging markets. The Company’s Internet Delivery Platform offers a low-cost Internet connectivity solution by bundling a tablet device with an Internet browsing second-generation (2G) service plan. DataWind offers eight models of its tablet device, the UbiSlate, and three models of its smartphone device, the PocketSurfer. All devices run on an Android operating system and are capable of accessing the Internet using 2G mobile-cellular technology and/or wireless-fidelity (Wi-Fi).
- Market Cap: $28.81(mm)
- Total Revenue (LTM, Default, Millions): $52.74
- YTD PCT Change: -41.4%
- PoP % Chg (1LTM) in Revenue (LTM, CAD): 100%
NYX Gaming Group Ltd. (CVE:NYX) – $1.42
NYX Gaming Group Limited is a digital gaming software supplier engaged in the design, development, manufacture and distribution of digital gaming solutions for interactive, social and mobile gaming around the world. The Company provides a suite of gaming solutions, a distribution platform, full gaming process support services, brand and player management, and both Real Money Gaming (RMG) and social gaming products and services. The Company operates through the diversified gaming solutions segment.
- Market Cap: $152.22(mm)
- Total Revenue (LTM, Default, Millions): $86.54
- YTD PCT Change: -47.8%
- PoP % Chg (1LTM) in Revenue (LTM, CAD): 144%
theScore Inc. (CVE:SCR)- $0.18
theScore, Inc. is an independent creator of mobile-first sports experiences. The Company connects fans to a combination of personalized real-time news, scores, stats, alerts and sports contests via its mobile sports platforms, theScore, theScore esports and QuickDraft. theScore includes the coverage of every league, team and player, and offers real-time alerts for scores, fantasy stats and news. QuickDraft is a fantasy game, which offers cash prizes.
- Market Cap: $51.70(mm)
- Total Revenue (LTM, Default, Millions): $23.92
- YTD Price Change: -50.7%
- PoP % Chg (1LTM) in Revenue (LTM, CAD): 94%