In an audacious departure from convention, PointClickCare Corp. sidestepped the public offering route back in 2016, setting a precedent that has redefined expectations in the tech landscape. Buoyed by an influx of capital from U.S. private equity firms, the Mississauga-based healthcare records software juggernaut has surged in size and stature, boasting a workforce of over 2,200 and a staggering revenue totaling US$750 million. Co-founder Mike Wessinger, with characteristic bravado, echoed the zeitgeist, proclaiming, “private is the new public.”
Fast-forward to today, PointClickCare has ascended the ranks to become one of Canada’s most formidable tech entities, holding a hypothetical valuation of US$7 billion. Its decision to remain private has shielded it from the burdensome costs of public listings and the capricious whims of quarterly public investor expectations.
Yet, as the corporate landscape shifts, Wessinger notes a pressing concern: the pool of suitable private equity firms capable of executing a buyout is dwindling to a mere trickle. With aspirations of enduring independence, the allure of going public is starting to flicker back into view. “We don’t love the idea,” he admits, reflecting the gravity of such a pivot. “But ‘Maybe we should consider it’ has been a topic of early discussion.”
PointClickCare is not a solitary figure in this burgeoning narrative. In an ambitious endeavor, The Globe and Mail launched an exploration to quantify private Canadian tech firms surpassing US$100 million in annual revenue—a testament to robustness and sustainability. The outcome is staggering: a cohort of 71 such companies, many eyeing the IPO horizon, while 19 have eclipsed the US$300 million threshold.
As revealed through extensive interviews with venture capitalists, private equity stakeholders, investment bankers, and the CEOs steering these formidable entities, the tapestry of Canada’s tech ecosystem is rich and diverse. Notable members like Koho Financial’s Daniel Eberhard, who took to LinkedIn for a celebratory selfie amidst the grandeur of the New York Stock Exchange, signifies this class’s burgeoning ambition. “We’ll be back,” he assures, signaling an upcoming resurgence.
In a striking juxtaposition to the tech startups of yore, which often forfeited too early or for too little, these companies now wield options, positioning themselves as stalwarts in the competitive arena. The path to a dazzling IPO remains tantalizingly possible, with some firms contemplating a showcase in either Toronto or New York—or perhaps an entirely different trajectory.
Renée Touzin, the helm of Giro Inc., a Montreal-based entity catering to global public transit and postal service scheduling, underscores the prevailing sentiment among founders: happiness reigns in incremental sales growth of 5 to 10 percent, far removed from the clamor of investment bankers and private equity offers.
The US$100-million club thrives with luminaries such as 1Password, Wealthsimple, Questrade, and Hopper—the third-largest online travel agency globally. These players have withstood the tumult of a brutal tech downturn that began in late 2021, even as others faced layoffs and financing hurdles.
This resurgence is countered by a stark reality; soaring interest rates have stifled software expenditure, leading many to reprivatize following disheartening public offerings. Opinions within the Canadian tech sector have soured, as the perennial government frustration stokes unrest among entrepreneurs. Founders decry a “lack of ambition” mentality, which has even spurred some to cross borders for greener pastures.
Yet, hope blooms anew for the members of this elite club. Dani Lipkin of TMX Group elucidates the undercurrent of excitement coursing through Canada’s tech landscape: “We’ve never seen such a plethora of large-scale technology companies here,” he notes, alluding to the unnoticed trailblazers in the background.
The region is home to a myriad of well-fortified brands—Geotab, GeoComply, Fullscript—standing as beacons of success, employing tens of thousands and raking in revenues that paint a promising picture for the future.
As they contemplate the IPO road, many leaders prioritize readiness and agility over haste. A measured approach prevails; after all, a hasty entry into the public arena could lead to a haphazard outcome reminiscent of previous tech booms.
In sum, the story of PointClickCare and its contemporaries is not merely one of growth; it is a complex tapestry woven with ambition, strategic foresight, and a yearning for resilient success. The landscape is shifting, and as the next chapter unfolds, a cavalcade of IPO opportunities may very well reimagine Canada’s standing in the global tech narrative. As Wessinger put it, “At some point, we want to go public”—and when that time comes, they will be ready to seize the moment.
