Battery Ventures to Acquire TrueContext in Latest Canadian Go-Private Deal

TrueContext, an Ottawa-based workflow and data collection platform, has reached an agreement to be acquired and taken private by Battery Ventures, a Boston-based investment firm.

TrueContext shareholders are set to receive $1.07 per share in the acquisition deal, which values the company’s total equity at around $150 million on a fully diluted basis. This purchase price represents an almost 40 percent premium over the company’s closing price of $0.77 on the TSXV as of March 8.

TrueContext boasts a client roster that includes industry giants like Shell, Chevron, and DHL, with over 100,000 customers in total. The acquisition is slated to be finalized in the second quarter of 2024. Alvaro Pombo, co-CEO, and founder of TrueContext expressed enthusiasm about collaborating with Battery to expedite the company’s expansion in the field intelligence sector.

Special committee chair Catherine Sigmar stated in a release, “The transaction follows a comprehensive strategic evaluation process led by a special committee of TrueContext’s board, in collaboration with its financial advisors, aimed at optimizing value for shareholders.”

Originally established in 2001 under the name ProntoForms, TrueContext offers a no-code workflow solution tailored for field services, including repair and maintenance tasks. Its platform enables clients to assign jobs to workers seamlessly, incorporating data and collection tools like notes, images, and geolocation. Moreover, TrueContext’s platform facilitates integrations with popular services such as ServiceNow, Salesforce, and Dropbox, enhancing its versatility and usability for diverse business needs.

TrueContext reports that its platform has been utilized by more than 100,000 customers for a range of purposes including asset inspection, compliance management, installation, repair, maintenance, and health and safety protocols. Notable clients, as cited by the company, include industry giants like Shell, Chevron, and DHL, underscoring the platform’s wide-ranging applicability and adoption across various sectors.

In November, TrueContext underwent a rebranding transition from ProntoForms, coinciding with a change in its TSXV ticker from PFM to TCXT. This strategic rebranding endeavor aimed to realign the company’s corporate identity with its flagship product. TrueContext has been a publicly traded entity since 2007, experiencing fluctuating share values over time. While its peak share value reached $1.40 in January 2021, the company’s valuation has also dipped to as low as $0.56 per share within the past year.

TrueContext’s decision to go private aligns with a trend observed among Canadian tech companies, as it joins a growing list of firms opting for privatization. Recently, Montréal-based e-commerce solutions provider MDF Commerce also announced its move to go private. This decision follows a definitive agreement with New York-based investment firm Kohlberg Kravis Roberts (KKR), signaling a broader trend in the Canadian tech landscape.

In February, Q4 Inc. underwent delisting from the TSX following a $257-million CAD buyout agreement with Sumeru Equity Partners. This move mirrors similar transactions witnessed by BBTV Holdings and Dialogue Health Technologies in 2023.Indeed, Farmer’s Edge, mCloud, and Mednow are among the notable Canadian companies that have pursued strategies aimed at seeking buyers to transition them into private entities. This trend underscores the dynamic nature of the tech industry and reflects the evolving strategies adopted by companies to navigate market challenges and capitalize on new opportunities.