Two weeks ago Techvibes reported that Vancouver's Layer 7 Technologies was acquired by CA Technologies for an undisclosed sum. Today we know that the price tag was close to $200 million.
Now tagged as one of the "largest deals for a software company in Vancouver in the past decade", the Vancouver Sun's Gillian Shaw is reporting that the purchase price was around $180 million.
"It's been a 10 year overnight success," Layer 7 cofounder Dimitri Sirota told Techvibes. "The ride hasn't always been smooth but we are all thrilled that the hard work has resulted in a great outcome for the investors, founders and staff. CA has been a great partner to date and we expect this tighter union will help catapult the Layer 7 business to even greater heights."
Sirota told the Vancouver Sun that “for a software company, it is one of the largest deals in a decade. In terms of leaving a legacy of a large expanding office here, in terms of generating wealth, in terms of generating a return on investment – by any measure it is a very successful transaction.”
Layer 7 was launched 11 years ago by Sirota and cofounders Jamie Glennon, Lonny McLean and Toufic Boubez and raised a total of $21 million in venture capital, with investment coming from the Bay area, from Vancouver’s GrowthWorks, the Business Development Bank of Canada and local angel investors.
“One of the things we feel proud about, each of our local investors will get around $50 million each on this transaction while they’ll reinvest in the local community,” said Sirota told the Vancouver Sun. “A large pool of BC angel investors will do very well and a lot of employees will be millionaires. It has created wealth in BC that will be reinvested here.”
Update: Canadian Private Equity has confirmed that the acquisition price was $155 million.