Canada's largest independent services provider was acquired by a private Canadian investor group led by Hubert Kelly, President and CEO of EDS Innovations Inc., repatriated as NexInnovations Inc. The transaction included a structured acquisition and a refinancing of the acquired business for $70 million.
The new entity, known as NexInnovations Inc., had revenues of $624 milion in its fiscal year ended December 31, 2000 and reported sales of $240 million for the three-month period ended March 31, 2001. NexInnovations was originally founded as Ottawa-based Computer Innovations in 1978.
An Aird & Berlis LLP team, which included Martin Kovnats, Norman Kahn, Tom Fenton, Stuart Bollefer, Andy Ayotte and Andrew Wilder acted on behalf of the investor group, and support on intellectual property was provided by Scott macKendrick and Grant Cansfield. Victoria Lazar, in-house counsel (US) and Susan Foran (Canada) represented the vendor, EDS Canada. Smith Lyons LLP (now Gowling Lafleur Henderson LLP), represented by Liz Breen, Hilda Wong and Kelly Murray, was legal counsel to Congress Financial Corporation (Canada), lender to the purchasers. IBM Canada relied on in-house counsel Melissa Rosen.