Counsel to Federated Foundry on Business Combination with PopReach

Toronto-based 2810735 Ontario Inc., doing business as Federated Foundry, has closed a business combination transaction with PopReach Corporation.

On April 28, the two companies sealed a deal for PopReach to acquire Federated for a net purchase price of $127.24 million. The cashless transaction will see Federated shareholders receive 0.7541 common shares in PopReach in exchange for each Federated common share they own.

Federated specializes in acquiring and growing digital technology companies. Its portfolio includes notifyAI, an internet marketing company, Q1Media, a digital advertising company, and Contobox, a customer engagement platform.

PopReach, also based in Toronto, owns PopReach Games, a mobile game developer. Shares of the company resumed trading on the TSX Venture Exchange after the deal closed.

“We are thrilled to be closing this transformational business combination, with our shares set to resume trading, as we set out to build the digital media enterprise of the future by leveraging Federated’s adtech and digital technologies platform with the game content at PopReach,” PopReach co-founder and CEO Jon Walsh said in a statement.

As part of the business combination, Federated co-founder Ted Hastings has become executive chairman and director of PopReach.

“When Federated was founded, we moved quickly to acquire three complementary businesses with good growth profiles at attractive multiples,” Hastings said. “Now, as part of PopReach, we intend to use this successful playbook with a larger platform that will allow us to collectively grow and drive greater value accretion, and we cannot wait to get started on the pipeline of opportunities we have underway.”

MLT Aikins lawyers Mahdi Shams, Britt Redenbach and Selena Chen were pleased to act as counsel to Federated Foundry in this transaction. Learn more about how our M&A lawyers help clients achieve their business goals.