Teraxion repurchases institutional shareholders’ equityCreated January 5, 2017
TeraXion’s management announced on December 20th, 2016, that it has repurchased the equity held by the company’s institutional shareholders. The Business Development Bank of Canada (BDC), its investment division, BDC Capital, and RBC Royal Bank financially backed this transaction.
TeraXion designs, manufactures and markets best-in-class components and modules to emerging markets such as high-speed transmission networks, fibre laser and optical sensing applications.
Alain-Jacques Simard, TeraXion’s President and CEO, commented, “We are glad to have had the support of our institutional shareholders: Fonds de solidarité de la fédération des travailleurs et travailleuses du Québec, Caisse de dépôt et placement du Québec, Fondaction CSN and Accès Capital for nearly seven years.”
He added, “They have helped us accomplish ambitious projects that have generated wealth over the years for TeraXion, its shareholders and the Quebec City community.” Simard also stressed that it is always difficult to end such a rewarding partnership.”
The company sold its integrated photonics division in February 2016 to telecommunications giant Ciena Canada. According to Simard, this transaction was an opportunity for management to take a step back to restructure and to review its business plan and vision. “BDC, BDC Capital and RBC Royal Bank have presented us agile solutions that will support TeraXion’s development and growth”, he added.
Louise Langevin, Vice President for Quebec, Growth and Transition Capital, at BDC Capital, commented, “BDC Capital is proud to accompany TeraXion, a Canadian knowledge-based company with broad international reach, in this milestone and in achieving its vision.”
With over $2 billion in managed assets, BDC Capital is BDC’s investment division and is a strategic partner to Canada’s most innovative and promising companies. It offers a full spectrum of specialized financing, including venture capital, equity as well as growth and business transition capital to help Canadian entrepreneurs transform their business into world leading companies.
For more information, visit bdc.ca/capital.
See also: Teraxion’s high-speed photonics components division is acquired by Ciena