Montréal-based Valsoft Corporation capped off 2024 by raising a $150-million USD ($216.7-million CAD) growth equity round to continue acquiring and scaling vertical software companies.
Valsoft kicked off 2024 with a similar growth equity round led by Coatue and Viking Global.
This strategic financing round was led by Portage Capital Solutions, with participation from Propelr Growth and return investor Viking Global, which acquired a minority stake of Valsoft in March 2022 for $100 million USD.
Valsoft said in a statement it will use the funding to expand its portfolio and support the launch of innovative products and services, adding that it is aiming to expand across new geographies and industries.
BetaKit has reached out to Valsoft to ask for more details.
Founded in 2015 by current CEO Sam Youssef and Steph Manos, Valsoft acquires and develops vertical market software companies. Its portfolio includes companies in over 40 verticals, including information technology, retail and point of sale, aviation, education, transportation, and logistics, among others.
Under Valsoft’s model, acquired businesses continue to operate as they did before, but with additional support and expertise from Valsoft’s network. The firm says on its website that Aspire Software, the operational arm of Valsoft Corp, operates and manages Valsoft’s portfolio.
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Valsoft kicked off 2024 with a similar growth equity round led by Coatue, securing $229 million CAD ($170 million USD) last January to help expand its portfolio. A Valsoft spokesperson told BetaKit at the time that the company intended to acquire more than 30 companies in 2024.
The company went on to announce 19 acquisitions last year, including two Canadian companies in Québec City-based dental practice management software company Progitek and Montréal-based Trendex Information Systems, which specializes in accounting software for industrial gas and welding supplies distributors.
Valsoft added many new verticals to its portfolio in 2024, getting into telecommunications through Equinox Information Systems, life sciences through Anju Software, and media publishing through Aysling.
Youssef and Manos previously founded the embattled parent company of Pornhub and other adult websites, MindGeek. Youssef told the Montréal Gazette in 2023 that he “got out of the business” in 2008 and sold his stake in 2010.
Feature image courtesy Valsoft Corporation.