Montréal-based SaaS startup GSoft has acquired Québec City company Didacte as it looks to expand its suite of software solutions for employee engagement.
After hitting an annual recurring revenue of $100 million in 2021, which gave GSoft the designation as a ‘centaur,’ the company is now aiming to pursue growth by acquiring more companies—starting with Didacte.
“Acquiring Didacte is a key step in executing our growth strategy, which consists of expanding GSoft’s presence, while gaining market share.”
– Martin Gourdeau, GSoft
Didacte offers a web-based learning management system (LMS), which allows organizations to create, distribute, and manage digital courseware for learners. The platform also provides tools for tracking participation, performance assessment, and reporting, among other functions.
Didacte said it has a workforce of 10 people and over 400 clients worldwide, including ADISQ, a nonprofit focused on supporting the independent music industry in Québec, and La Ronde, an amusement park in Montréal that is operated by Six Flags.
Under GSoft, Didacte said it will make its online learning platform available to GSoft clients as part of its overall aim to increase Didacte’s impact and outreach, according to Didacte CEO Mathieu Dumont.
A spokesperson for GSoft told BetaKit that its acquisition of Didacte was an all-cash deal, and represents GSoft’s first acquisition. They added that GSoft “would like to complete at least one additional transaction by the end of the year.”
“We see acquisitions as one of the tools at our disposal to generate the growth we expect from the business in the years to come,” GSoft’s spokesperson said. GSoft declined to disclose the financial terms of the acquisition.
Founded in 2006, GSoft has built and launched three software products to date: ShareGate, Officevibe, and Softstart. It started out as a software development services company, then later started building its own product suite focused on employee experience. GSoft closed its services business in 2017 to focus on its technology products.
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GSoft claims over 15,000 companies use its offerings, including the likes of McDonald’s, Ikea, Bose, and Salesforce. The company currently has a team of 400 employees, following its previously announced plans to hire over 200 employees across Canada in 2022.
GSoft president and general manager Martin Gourdeau said that Didacte marks the beginning of GSoft’s plans to implement a growth strategy based on acquisitions.
“Acquiring Didacte is a key step in executing our growth strategy, which consists of expanding GSoft’s presence, while gaining market share in existing and new markets,” he said. “Adding an LMS product into the family is an important milestone for GSoft, as we work toward our objective of developing an ecosystem of interconnected products.”
According to GSoft, all previous Didacte employees are now part of the GSoft team. It also expects to complete Didacte’s integration by spring.