Waterloo-based public sector sourcing and procurement tech startup Bonfire announced today that it has signed an agreement to be acquired by GTY Technology Holdings for $108 million USD ($140 million CAD) in consideration. GTY is an SPAC founded by former Accenture CEO Bill Green, former EMC CEO Joe Tucci, and former Accenture and Oracle CFO, Harry You.
As part of the acquisition, Bonfire will merge with five other ‘Govtech’ SaaS and cloud platforms to form a new publicly traded company. Each company will operate as distinct business units led by their existing management teams. The five additional companies acquired by GTY include Burlington-based Questica, a provider of budgeting software, performance management and transparency and data visualization solutions. Overall, GTY has agreed to pay $365 million USD in cash and stock to acquire the companies, plus an aggregate earn-out consideration of up to $132 million USD in cash and stock.
“We’re in the early stages of a monumental shift in how our governments and institutions harness the power of the cloud,” said Corry Flatt, CEO and co-founder of Bonfire. “Joining forces with these five companies under GTY is a major win for our clients and our staff. It puts Bonfire on an even more exciting trajectory towards our ultimate goal of powering trillions of dollars in spending decisions every year.”
Bonfire was founded in 2012 by Corry Flatt and Alex Millar. The company’s most recent financing came in an $11 million round last year led by Battery Ventures, with participation from Crosslink Capital and Spider Capital. Previous investors include FundersClub and Garage Capital.
The company helps procurement teams define their sourcing objectives and requirements; engage suppliers; collect rich data from vendor proposals; and then collaboratively evaluate, analyze, and compare potential options online. Bonfire targets both the public and enterprise sectors.