Leading Edge Geomatics, a New Brunswick-based provider of aerial survey and geomatics services, has sold a majority stake to Montreal private equity firm Novacap for an undisclosed sum.
Though the price was not revealed, there’s no doubt this is a significant deal for Atlantic Canada. Founded by Canadian military veterans in 2008, Leading Edge has established itself as a leader in the field of geomatics, which involves the collection and analysis of geographic information. It has a fleet of several aircraft and a double-digit staffing level.
"Novacap is excited to join forces with Leading Edge and continue investing in people and products, and will support the company in finding new market opportunities to bring the business to the next level," NovaCap Partner Yong Kwon said in a press release. "Over the last decade, Leading Edge has delivered best-in-class aerial lidar services and industry leading solutions to the forestry, utility and other sectors."
Novacap is one of Canada's leading private equity firms, having raised $2.26 billion in capital since its inception. In July, Novacap closed its $840 million TMT IV Fund, which financed the Leading Edge deal. The private equity fund said Leading Edge will continue to be led by its co-founders Bruce Hogan, Bill Kidman and Will Lowry, who will retain a significant interest in Leading Edge.
“Novacap's investment will further accelerate growth through expansion into new markets, drive strategic acquisitions and continue investments in research and development of the company's industry leading decision-support solutions,” said the release.
In the 2016 fiscal year, New Brunswick Innovation Foundation provided Leading Edge with an innovation voucher worth $56,000, helping it to conduct research at a New Brunswick institution. NBIF President and Chief Executive Calvin Milbury said in an email Tuesday that Leading Edge is an “impressive growth company by any standard.”
Based in Lincoln, NB, Leading Edge provides end-to-end aerial surveying services that use lidar – a system based on the principles of radar with the use of laser beams. The company offers unique data processing capabilities and industry-leading decision support solutions.
The company’s Enhanced Forestry Inventory management solution combines lidar terrain and surface products to analyze forest metrics and terrain data. This combination can bring forestry companies an improved management strategy and efficiency in operations.
Leading Edge’s Powerline Mapping solution supports utility companies in better managing hazardous vegetation for thousands of kilometers of powerlines throughout North America.
"We see tremendous growth opportunities in the market for Leading Edge and know we have picked a strong partner with deep operational expertise to help us deliver on this potential," said Hogan, the company’s CEO. "We couldn't be more excited about the future for the business and what this means for New Brunswick and our key stakeholders."
Leading Edge was advised by the Charlottetown-based boutique advisory firm Confederation M&A.
“This deal was the result of a competitive bidding process that had substantial levels of interest,” said Confederation Senior Advisor Bob Brown. “After going through the due diligence process it became very clear that Novacap would be a good fit and ultimately, the preferred strategic partner. Their disciplined and proactive investment approach make for a great partnership and will help Leading Edge launch into its next phase of growth.”
