Montréal-based public sector procurement platform Sovra (formerly MDF Commerce) has appointed a new CEO, acquired Calgary-based software startup Ontopical, and sold off six of its “non-core” businesses to strengthen its position in the government tech market.
Founded in 1996, MDF Commerce provided a broad set of e-commerce and procurement software solutions before it was acquired by New York-based investment firm Kohlberg Kravis Roberts (KKR) and delisted from public markets last May. Rebranded as Sovra in August 2024 to reflect its public sector focus (a blend of “sovereignty” and “strategic analysis”), the company’s platform helps governments source and manage their procurement contracts.
The renewed government tech focus will be spearheaded by new CEO Tom Spengler, who has served on Sovra’s board for just under a year. The incoming CEO has led various government tech companies for more than 20 years, with most of his time spent at Denver, Colo.-based civic engagement software platform Granicus.
Spengler is replacing Luc Filiatreault, who served as CEO for six years and oversaw MDF’s go-private deal last year.
In a company statement, Sovra credited Filiatreault for growing MDF through strategic acquisitions “while building a strong foundation to become a GovTech category leader.” Filiatreault will remain on Sovra’s board and transition to an advisory role.
“I am deeply passionate about Sovra’s mission and look forward to building on the strong foundation that Luc has established, particularly in growing our platform and further strengthening our position in the GovTech market,” Spengler said in a statement.
Additionally, Sovra is trimming six “non-core” businesses from its portfolio to “enable a more concentrated allocation of capital resources” toward its renewed focus. Automotive part management software Carrus, online jewelry marketplace Polygon, and electronic component wholesaler The Broker Forum have been sold to Montreal-based vertical software acquirer Valsoft. The other three, Jobboom, kCentric, and Orckestra, have been sold to another undisclosed software acquirer.
Simultaneously, Sovra has acquired Calgary-based government intelligence platform Ontopical for an undisclosed amount. Using its proprietary artificial intelligence (AI) platform Oliver, Ontopical helps suppliers identify early-stage opportunities before the issuance of requests for proposal (RFP). Sovra said pre-RFP intelligence is a natural extension of its supplier platform, giving vendors more time to identify, prepare for, and win government contracts.
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Founded in 2017, Ontopical raised a $3.3-million seed extension in September 2023 to begin layering AI procurement insights for local government data into its platform.
Sovra said that the Ontopical acquisition also lays the foundation for its new AI Center of Excellence, which will accelerate the development of intelligent features and automation across its platform. Ontopical CEO Clayton Feick joins the company to become president of Sovra Supplier, and Ontopical founder Derrick Koenig will lead the Supplier product team.
“Joining Sovra gives us the reach, resources, and platform to help thousands more businesses gain an advantage by connecting with public sector demand, early and effectively,” Feick said in a statement.
Sovra claims to connect over 7,000 government agencies with more than one million suppliers.
Feature image courtesy Sovra via LinkedIn.