Tech M&A Across Canada’s Ten Largest Cities
Canada has a fast-growing technology scene that is spread across the largest cities in the country. We were curious to determine which cities are most dominant for the major verticals in technology: Communications/Networking, Computer Hardware, Semiconductors, IT Services, and Software.
We looked at M&A transactions since 2010 within each vertical in technology originating from Canada’s ten largest cities. To further ensure comparability, we took into consideration population discrepancies.
The cities we will be evaluating are the following (organized by descending population):
1. Toronto GTA (6,555,200)
2. Montreal (4,364,190)
3. Vancouver (2,737,700)
4. Calgary (1,543,280)
5. Edmonton (1,468,930)
6. Ottawa (1,461,490)
7. Winnipeg (850,060)
8. Quebec City (832,330)
9. Hamilton (804,690)
10. Kitchener-Waterloo (593,880)
At surface level, Toronto is the most dominant city for technology M&A transactions across all verticals in tech. From looking at Figure 1, it is clear that Toronto is in a league of its own compared to the other cities in Canada.
Figure 1: Total Technology M&A Transactions
Toronto may be the overall tech hub of Canada, but it is also by far the most populated city in the country. If we look at the same technology transactions but normalize for population discrepancies across all the cities, a much different graph is created.
Figure 2: Population Adjusted Technology M&A Transactions
After adjusting for population, Vancouver, Calgary, Ottawa, and Kitchener-Waterloo explode as technology giants that can compete with Toronto.
When analyzing the total M&A transactions by individual verticals in technology, the effects of population are further illustrated amongst the ten cities.
Figure 3: Communications/Networking M&A Transactions
Figure 4: Computer Hardware M&A Transactions
Figure 5: Semiconductors M&A Transactions
Figure 6: IT Services M&A Transactions
Figure 7: Software M&A Transactions
Toronto may be where the majority of technology M&A activity occurs in Canada, however, it is the fourth largest city in North America and the data reflects that. There are several other cities within Canada that are on the rise for specific verticals in technology that should receive recognition as well considering their size. On a population adjusted basis, Calgary is the leader for Networking, Ottawa is the leader for both Semiconductors and IT Services, and Vancouver is the leader for Software.
This level of diversity is definitely encouraging and shows that Canada’s tech eco-system is truly diverse with lots of bright spots across the country!
About Sampford Advisors
Sampford Advisors is a boutique investment bank exclusively focused on mid-market mergers and acquisitions (M&A) for technology, media and telecom (TMT) companies. We have offices in Toronto, ON, Ottawa, ON, and Austin, TX and have done more Canadian mid-market tech M&A transactions than any other adviser.
Photo by Jacky Huang on Unsplash