In February of 2019 VERTU Capital joined with BDC Capital and the Firmex executive management team to buy the company. The announcement was made on February 5th. Firmex is a popular solutions provider for secure document sharing and also virtual data rooms. The firm was previously owned by Novacap, a private equity firm that is located in Montreal. The funding for the purchase was provided by the Bank of Montreal via a debt financing agreement with the purchasing parties.
Firmex.com is a leader in the virtual data room segment. Virtual data rooms offer secure virtual spaces for clients in a wide array of businesses. In fact, since 2006 more than 120,000 companies across dozens of countries have used the company’s products. Clients use the data rooms to share complex and confidential information with the trust that the information will be protected. A virtual data room is an online repository of information. It is used for storing and distributing myriad documents. The documents can be organized and tracked when shared, with the data room administrators having full control and oversight. Virtual data rooms are effective in supporting complex business projects and processes. When the sharing or disclosure of confidential documents with third parties is necessary and must happen beyond the company firewall, a virtual data room can be essential.
When it is necessary that professionals share confidential documents beyond their firewall, Firmex steps in as a reliable partner. When a client gets a Firmex subscription, it provides an easy, safe and uncomplicated document sharing product without unexpected costs. Firmex’s clients range from investment companies to legal firms, with operations in due diligence, legal matters, and financial compliance procedures. Firmex stays ahead of its competition by not only providing effective products, but also concentrating on delivering excellent customer service. This has led to a high customer retention rate.
Joel Lessem is Firmex’s Chief Executive Officer and Co-Founder. He notes that the firm, during its initial growth phase, had a successful partnership with Novacap. He is now excited to work with VERTU and BDC Capital. He thinks that the industry expertise held by VERTU Capital and BDC Capital will augment Firmex’s increasing growth, as the company moves into the next phase of expansion.
Novacap, the private equity firm to previously work with Firmex, was founded in 1981 and has assets under management of $2.3 billion. Firmex was one of the portfolio companies within Novacap Fund TMT IV, which has raised $375 million from investors. Novacap has a specific investment strategy, which is based on extensive operational understanding and hands-on partnering with entrepreneurs. This has helped create rapid growth and long-term value for its investee companies, such as Firmex. About Firmex, Novacap partner Yong Kwon asserts that Novacap is very pleased with their investment in Firmex and the shareholder value the company generated.
Lisa Melchior, a veteran of the private equity world and the founder of VERTU Capital, stresses the fact that Firmex is committed to its client service orientation as well as delivering top-notch products. She sees Firmex as the type of company with which VERTU seeks to work, considering VERTU was founded with the idea of partnering with great Canadian technology companies. VERTU looks to partner with businesses that have significant, industry-leading growth potential and superior management teams that desire an investor thought partner. VERTU concentrates on the realization of a company’s long-term goals. VERTU offers in-depth knowledge that is relevant and beneficial through all phases of a company’s growth. Melchior states that VERTU is excited for the opportunity to work with both BDC Capital and Firmex as the firm moves forward in its journey in creating a world-class company.
Claude Miron, Vice President at BDC Capital, also weighed in on the acquisition. He believes Firmex is a notably well-managed company and its growth initiatives in the pipeline are promising. He notes that his company is eager to assist Firmex as it scales globally. He further states his company is looking forward to working with Lisa Melchior, as she is a knowledgeable and seasoned investment professional with the driving purpose of building a top technology-focused private equity firm. One of BDC Capital’s goals is supporting female leaders in technology related industries.
Overall the partnership brings together experienced players in the industry. The varying strengths of each of the partner organizations bode well for the future growth of Firmex.