Lightspeed: a series of acquisitions creates Québec’s first unicorn
Last March Lightspeed, a business that offers an all-in-one software solution for retailers and restaurateurs, became the first Québec unicorn to go public. A well-thought-out strategy led to the success of this audacious but promising transaction. CDPQ is proud to have been present at key moments in Lightspeed’s growth. A profile of growth at the speed of light…
Capital role played by capital
This tech company already had big dreams when it was launched in 2005, and investors recognized its potential for growth. The benefits included a B2B business model based on monthly subscriptions that ensured recurring revenues, a sales force founded on a firmly established customer acquisition and retention model, and a finely tuned acquisition strategy. Today, the company is positioned as the global leader.
To support its technological development and expand its market shares, Lightspeed completed four rounds of financing that brought close to US$300 million into the company. From 2013 to 2018, the iNovia venture capital firm (in which CDPQ is one of the main partners) was involved in each of these rounds of financing.
CDPQ made a direct investment in the company in 2015 and reinvested another US$136 million in 2017.
Lightspeed IPO
Acquisitions to accelerate growth
From 2013 to 2015, Lightspeed completed acquisitions of three complementary SaaS (software as a service) platforms, adding e-commerce and restaurant services modules to its service offer.
International acquisitions
California: MerchantOS, a point-of-sale platform, gave access to a larger market with greater continuity in business operations.
Belgium: POSIS enhanced the service offer by adding a component for the company’s restaurateur clients.
Netherlands: The service offer was expanded with the online e-commerce technology developed by SEOShop in the Netherlands.
More recently, in 2018 Lightspeed acquired ReUp, a Toronto-based business specialized in loyalty program management.
Each acquisition is carefully considered in terms of the synergies it offers, the technology’s potential, the current team’s experience and the parent company’s ability to efficiently complete the integration. In order to share the corporate culture and orient the strategy, representatives from Montreal join the existing teams based abroad.
Share growth!
From the company’s first contact with investors, it was recognized that Lightspeed could one day go public. Discussions gathered momentum in 2018 and CDPQ nominated three directors to Lightspeed’s board, people with complementary skills who would be able to provide guidance at this stage.
This is how the business profited from the expertise and credibility of Marie-Josée Lamothe, formerly with Google Canada and Google Québec, for the marketing and customer acquisition component; of Rob Williams, for his experience in e-commerce acquired at Amazon; and of Paul McFeeters, formerly with Open Text, for his knowledge of strategic partnership development and acquisition strategies.
Following a successful investor tour, Lightspeed completed its initial public offering on March 8, 2019, making it the first Québec unicorn to go public.
In addition to supporting the company’s continued organic growth and acquisition strategy, the decision to go public in 2019 has allowed Lightspeed to consolidate its international expansion, its visibility and its credibility in the market.
Lightspeed in figures:
- Founded in 2005
- 8 offices, including the head office in Montreal
- Over 725 employees
- Over 47,000 clients and points of sale in over 100 countries