Tiny is going public by merging with TSX-V traded WeCommerce
Victoria-based tech holding company has acquired over 30 companies since it was founded in 2016.
For over a decade, Tiny has been known for its deal-making, and Monday it revealed details of perhaps its biggest deal yet.
The Victoria-based holding company has entered into an agreement to merge with ecommerce business WeCommerce, along with another subsidiary in a “three-cornered amalgamation.” WeCommerce is publicly traded on the TSX Venture Exchange. It will be an all-share transaction under the Business Corporations Act (British Columbia).
The ultimate value of the new entity will be determined by the market. However, a statement from WeCommerce pins the total equity value at $911 million.
Founded by Andrew Wilkinson and Chris Sparling, Tiny is a tech holding company that invests in and takes majority positions in a variety of businesses. It has acquired over 30 companies since 2016 and has self-funded its growth since inception without raising any equity capital. Tiny founded WeCommerce and remains its largest shareholder.
WeCommerce’s group of companies includes Pixel Union, Out of the Sandbox, KnoCommerce, Archetype, Yopify, SuppleApps, Rehash, Foursixty, and Stamped.
"We have been building Tiny for over a decade and could not be more excited to go public through our merger with WeCommerce,” said Andrew Wilkinson, co-CEO of Tiny. “We will continue our focus on acquiring exceptional businesses and holding them for the long-term.”
Wilkinson and Sparling owned a combined 98% of Tiny prior to its merger with WeCommerce. Wilkinson is also a significant shareholder of WeCommerce through Tiny and Wilkinson Ventures, which collectively own approximately 27% of the issued and outstanding Class "A" common shares of WeCommerce. Sparling also has indirect ownership in WeCommerce through his approximate 20% ownership of Tiny, according to a statement.
"I have always considered Andrew and Chris to be the Warren and Charlie of the technology investment world,” said Bill Ackman, who, through a family investment vehicle, owns 15.4% of WeCommerce. “They are outstanding operators and value investors, and I could not be more delighted that they have decided to go all-in and merge Tiny, which represents substantially all of their assets, with WeCommerce.”
Ackman is the largest non-management shareholder in the company.
After the deal is complete, Tiny will consist of three core operating segments and several standalone businesses, including Beam, a digital services group of which MetaLab is a subsidiary; Dribbble, a social network and marketplace for digital designers and creatives; WeCommerce; and several standalone businesses, including Meteor Software and We Work Remotely.
Andrew Wilkinson is the co-founder of Overstory Media Group, the parent company of Vancouver Tech Journal.
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