Datasite®, a leading SaaS-based technology provider for global mergers and acquisitions (M&A) professionals, today announced the strategic acquisition of Firmex, a leading virtual data room and subscription file-sharing provider based in Toronto, Canada.
“Datasite is focused on providing global dealmakers with innovative technology that helps them accelerate and improve outcomes across the entire deal lifecycle,” said Rusty Wiley, Chief Executive Officer of Datasite. “The acquisition of Firmex supports our aggressive growth strategy into new markets, including supporting a wider range of use cases.”
Firmex, which provides customers with secure document sharing solutions across many different use cases in the lower middle-market, including M&A transactions, loan syndication, fundraising and licensing deals, will run as a strategic business unit within Datasite and will function as a standalone entity. Its management team will remain in place and continue to lead the successful business, supported by Datasite’s ongoing investment.
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“Datasite’s investment will help us further expand our growing subscription-based business within the lower middle-market, as well as pursue new opportunities,” said Joel Lessem, Chief Executive Officer of Firmex. “We look forward to delivering even more value to our customers and enhancing Datasite’s meaningful presence in Canada.”
Datasite acquired Firmex from majority owners Vertu Capital, a Toronto-based private equity firm specializing in high potential, Canadian-headquartered global technology companies, and BDC Growth Equity Partners Fund I, a fund managed by BDC Capital, the investment arm of the Business Development Bank of Canada. The financial terms of the acquisition are not being disclosed.
“We are extremely pleased with this strategic acquisition, which we believe will allow Firmex to fully maximize the potential of its unique market position, and drive value for Datasite,” said Lisa Melchior, Founder and Managing Partner at Vertu Capital. “Since acquiring majority ownership of Firmex in 2019, we moved quickly to leverage our deep domain expertise to support Firmex’s continued growth, and this acquisition reflects the value that has been generated in a short period of time.”
Earlier this year, Datasite launched data hosting capabilities in Australia and opened offices in Stockholm and Los Angeles. This followed Datasite’s 2020 acquisition by international private equity firm CapVest and the introduction of new applications to address customer pain points across the entire M&A deal lifecycle, including AI-powered technology to support deal preparation, asset marketing and buy-side acquisition.
Dealmakers in more than 170 countries make their deals in Datasite, including 74 of the top 100 legal firms and all the top 20 global financial advisory firms. Between FY2019 and FY2021, Datasite’s revenue increased by 37% as it facilitated some of the world’s biggest deals, including half of 2020’s 10 biggest M&A deals in the United States.
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