PUBLISHED: July 22, 2020
Two local companies that help smooth the flow of data over the internet also encountered little resistance on the sale of a technology business unit that will instantly make a Gatineau firm a global player in its field.
Kanata’s Martello Technologies and Gatineau’s Adaptiv Networks said Wednesday they have reached an agreement that will see the Quebec-based software networking firm acquire the assets and some liabilities of Martello’s money-losing Elfiq division in a cash-and-share deal.
Under the agreement, Adaptiv will pay $500,000 in cash and the equivalent of $300,000 in common shares to Martello for Elfiq, a Montreal-based entity that makes troubleshooting hardware to repair issues in cloud-based networks.
The two firms didn’t waste any time coming to terms on the transaction, which still requires the approval of the TSX Venture Exchange. After initially discussing a potential partnership in March, the cross-border neighbours quickly realized an acquisition would make the most sense for both sides.