Other deals this week include up to $531 million crossborder investments in tech, finance sectors
Norton Rose Fulbright advised Poka, a Quebec-based provider of “connected worker” software, on its sale to a Swedish tech giant. Also included in this week’s roundup are Ottawa’s $208-million contract with Irish American consulting firm for pandemic financial support program and Investment Management Corp. of Ontario’s $531 million (US$400 million) investment to a Swedish battery manufacturer.
Quebec-based Poka to sell to Swedish tech giant IFS
Quebec-based Poka Inc., provider of the “connected worker” software, agreed to sell to Swedish tech giant IFS World Operations.
The connected worker platform is a unique software that enables businesses to digitally link their factory and equipment operations with their workforce, giving them access to real-time data on tools and processes to improve training and offer on-the-job assistance.
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Norton Rose Fulbright’s Montréal and Québec legal teams are serving as counsel to Poka. The Norton Rose Fulbright team was led by Emmanuel Grondin and Julia Godolphin (M&A), and included Antoine Desroches (Tax), Jérôme Landry, Louis-Philippe Desjardins, Stefanie Thibert, Philippe Carignan, Charles-Antoine Renaud and Mélanie Lefebvre (M&A), Nikita Stepin and Roxanne Caron (IP, Cybersecurity and Data Privacy) and Éric Lallier (E&L).
Lead partner Emmanuel Grondin said, “This is a significant transaction and a testament to the highly sought-after software Poka offers its clients. In this volatile economic environment, agility and precision are crucial, and this deal was struck and executed quickly.”
“We are incredibly proud of the best-in-class platform we’ve built and our pioneering leadership in the Connected Worker space,” said Poka CEO Alexandre Leclerc. “As the global workforce crisis deepens, more companies are looking to scale their digital factory projects across the enterprise. With the help of IFS’s global presence and industry experience, Poka will be better equipped to deliver on its mission at scale.”
“The concept of a connected worker is synonymous with the augmented worker because of the direct impact on improving productivity and operational efficiency,” said IFS CEO Darren Roos. “The concept of connecting every single worker was historically overlooked as part of digital transformation journeys yet giving workers the ability to get information whenever and wherever they are in the factory not only improves their experience, it is fundamental to building manufacturing agility.”
The deal is expected to close in the third quarter of 2023.
Ottawa awards $208 million sole-source contract for CEBA program to Accenture
The government of Ottawa confirmed that its $208-million outsourcing agreement with Irish American consulting firm Accenture Inc. to deliver the Canada Emergency Business Account (CEBA) program, first announced in February, was a sole-source contract.
In an email to The Globe and Mail, Finance Minister Chrystia Freeland’s press secretary Katherine Cuplinskas said, “When the COVID-19 pandemic hit, the federal government acted swiftly to provide emergency support and ensure that Canadians and Canadian businesses could weather the storm.”
CEBA was the first and most widely used pandemic support for businesses. It was introduced on April 9, 2020, and offered over 900,000 firms partly forgivable loans of up to $60,000.
The program was initially assigned to Export Development Canada, a Crown corporation that provides credit to Canadian businesses doing work abroad, but EDC said it did not have the internal capacity to operate a loan program of that scale.
The agreement with Accenture to provide CEBA consists of 31 contracts, some of which were extensions of earlier agreements, according to records submitted to the House and Senate. The total value awarded to Accenture is $208 million, which is larger than any other major consulting firm in Ottawa’s public database of contracts.
IMCO invests $531 million to Swedish battery manufacturer Northvolt
The Investment Management Corporation of Ontario (IMCO) agreed to invest approximately $531 million (US$400 million) in Northvolt, a Swedish battery manufacturer. The funds is expected to go towards Northvolt’s planned expansion, aligned with both companies’ commitment to a sustainable battery supply chain.
IMCO aims to provide the greenest and lowest carbon footprint batteries for use in energy storage systems, industrial systems, and electric vehicles (EVs).
Northvolt's first gigafactory, located in northern Sweden, is currently producing sustainable batteries using fossil-free electricity. With a strong focus on clean energy manufacturing, regional sourcing and closed-loop circularity via recycling, Northvolt intends to offer the most sustainable batteries in the industry.
The joint investment by IMCO's Fundamental Equities and Global Infrastructure is driven by a concern for climate change management and facilitating the transition to a net zero emissions economy that both groups share. IMCO's Climate Action Plan, which includes a pledge to invest 20 percent of its assets under management in climate solutions by 2030, has made significant progress reflected by this investment.
“This innovative collaboration between IMCO's Fundamental Equities and Global Infrastructure teams is paving the way for meaningful capital deployment towards the energy transition,” said IMCO Chief Investment Officer Rossitsa Stoyanova. “With this investment, we are tangibly delivering on our Climate Action Plan, while also strategically managing material ESG risks, ultimately generating sustainable long-term value for our clients.”
“We're excited to partner with IMCO's Fundamental Equities and Global Infrastructure teams to build the future of clean energy together,’ said Northvolt CFO Alexander Hartman. “This investment fuels our expansion efforts, allowing us to further extend our global footprint and drive sustainable progress in our mission to deliver the world's greenest battery.”