5 Canadian Tech Stocks with Recent M&A Activity

The Canadian tech stocks on our list have made at least one acquisition this year

SmallCapPower | March 13, 2018: The Wall Street Journal recently reported that Intel (NASDAQ:INTC) may be interested in purchasing Broadcom (NASDAQ:AVGO). The move would be conducted to avoid Broadcom’s potential merger with Qualcomm (NASDAQ:QCOM), which if executed, would make the combined company the third-largest chipset producer. As the tech industry continues to grow, with the S&P/TSX Tech Index returning 15% YTD while the S&P/TSX Composite Index slipped 5%, the Canadian tech stocks on our list have made at least one acquisition this year.

Celestica Inc. (TSX:CLS) – $14.04
Semiconductors

Celestica is a Canadian tech company that provides a variety of process improvement solutions to the electronics manufacturing segment. Celestica’s services include design and development, engineering services, raw materials sourcing, assembly & testing and supply chain management solutions. On January 24, the Company announced the acquisition of Atrenne Integrated Solutions, a durable electromechanical solutions provider focused on aerospace applications for US$139M.

  • Market Cap: $2,017.4 Million
  • Announcement Date: 1/24/2018
  • Deal Size (M CAD): $178
  • YTD Total Return: 6.5%

AcuityAds Holdings Inc. (TSXV:AT) – $1.22
Software

AcuityAds is a Canadian tech company operating in the marketing vertical. The Company offers targeted ads, identifying consumers based on their shopping intent and delivering ads more likely to appeal to them. AcuityAds offers fully-managed advertising as well as self-managed advertising services. On February 28, the Company announced the acquisition of ADman Media, an advertising video platform for Spanish-speaking markets in Europe and South America for EU€17M, given that ADman meets certain targets.

  • Market Cap: $43.0 Million
  • Announcement Date: 2/28/2018
  • Deal Size (M CAD): $27
  • YTD Total Return: -26.1%

Descartes Systems Group Inc. (TSX:DSG) – $ 37.12
Software

Descartes Systems Group is a Canadian tech company providing network and logistics technology for the shipping industry. It provides connection to trading partners, document exchange, inventory and transportation management, and compliance and customs filing. On February 2, the Company announced the acquisition of Aljex Software, a cloud-based provider of transportation management solutions for US$32.4M.

  • Market Cap: $2,849.8 Million
  • Announcement Date: 2/2/2018
  • Deal Size (M CAD): $41
  • YTD Total Return: 3.9%

CryptoGlobal Corp. (TSXV:CPTO) – $0.83
Financial & Commodity Market Operators & Service Providers

CryptoGlobal is a Canadian cryptocurrency miner operating in Ontario and Quebec. The Company currently operates 7,700 rigs and plans to expand to 10,000 by the end of 2018. CryptoGlobal plans to mine four of the top 10 cryptocurrencies, namely Bitcoin, Ethereum, Litecoin, and Dash. On March 1, the Company announced the acquisition of Blockchain Dynamics, a cryptocurrency services platform, for $28M.

  • Market Cap: $115.5 Million
  • Announcement Date: 3/1/2018
  • Deal Size (M CAD): $28
  • YTD Total Return: 5.4%

HashChain Technology Inc. (TSXV:KASH) – $0.32
Financial & Commodity Market Operators & Service Providers

HashChain is a Canadian blockchain company that currently operates 877 cryptocurrency mining rigs in Vancouver and plans to expand to 46,600 by 2020. HashChain expects to mine primarily Bitcoin and Dash. On January 30, the Company announced the acquisition of Node40, a cryptocurrency accounting technology and masternode hosting company for US$8M.

  • Market Cap: $34.07 Million
  • Announcement Date: 1/30/2018
  • Deal Size (M CAD): $10
  • YTD Total Return: -78.4%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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