Toronto-Based Firmex Acquired by Datasite

Aug 25, 2021

3 min

11 views

On July 26, 2021, Datasite announced its acquisition of Firmex. Both of those companies deal within the same sector, fueling M&A deals with their software solutions. The union should result in an interesting new option on the virtual data room market. 

But before we speculate about the future, we need some information about both of those companies. So let’s dive in.

Firmex: Who are they?

Founded in 2006 in Toronto, Canada, Firmex file-sharing solutions helped facilitate due diligence, M&A deals, litigation, governance, and large-scale financial transactions. The Firmex data room now serves over 140,000 businesses worldwide. Clients from 110+ countries from varying industries, including oil and gas to investment banking, government, and pharma, have trusted them with their document security.

Datasite: Who are they?

Founded in 1968 in Saint Paul, Minnesota, Merrill was originally a typesetting business known as K.F. Merrill Company. In 1984, it was rebranded to Merrill Corporation and widened the scope of its services to electronic filing, e-production, and publishing. The company only entered the virtual data room market in 2002, having developed the Datasite product. After acquiring investments in 2014, the Datasite data room became the leading product of the company, forcing a 2018 digital transformation and rebranding of Merrill Corporation to Datasite.

Today the Datasite company is a leading SaaS technology provider offering guidance through the M&A process in 170 countries.

Now that you now know a bit more about both of these companies, we can discuss the reasons they joined forces. 

Reasons for the acquisition of Firmex

As both companies’ missions overlap, it is easy to see why they combined their forces. The Datasite company is one of those organizations that help directly oversee the M&A process in a variety of industries, and Firmex is responsible for providing the tools necessary to make that happen. 

The company was preparing for the acquisition as it opened data hosting capabilities in Australia in 2020. This was also the year during which they oversaw 10 of the biggest M&A deals in the United States. 

Datasite had a wide range of clients, and to support that, they needed to join forces with one of the leading virtual data room providers. They chose Firmex company, and after purchasing a majority stake of shares in 2019, they ended the acquisition process in 2021. During those two years, Datasite supported Firmex in their endeavors and helped them grow. 

Unfortunately, no financial details of this transaction were disclosed. We can only speculate how many millions of dollars this kind of deal must have cost and how much revenue it will generate in the future. 

Perspectives for the future 

Datasite was an already growing company with a 37% increase in revenue between 2019 and 2021. Combining Firmex and their Firmex data room, they will most likely experience another growth spurt. 

They will be able to support more and more deals, and equipped with the Firmex infrastructure, Datasite will make a big impact on the M&A market. They have already proven themselves a worthwhile competitor in that space, but with the help of the virtual data rooms of the acquired company, they might beat their competitors.

As the chief executive officer of Datasite, Rusty Wiley, said, “The acquisition of Firmex supports our aggressive growth strategy into new markets, including supporting a wider range of use cases.

Firmex representatives have also commented on the successful merger. Joel Lessem, the Chief Executive Officer of Firmex, has the following to say: “We look forward to delivering even more value to our customers and enhancing Datasite’s meaningful presence in Canada.

This further confirms our speculation about the future of Datasite. We look forward to what they will accomplish in the upcoming years.