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Canadian Tech in 100 Words

Bench’s Sudden Shutdown Rescued by Employer.com Acquisition

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Vancouver-based Bench Accounting abruptly shut down on December 27, leaving 12,000 users scrambling during tax season. Within days, HR startup Employer.com acquired Bench, salvaging its operations. Customers now face a choice: stay with the new ownership or seek alternatives.

Bench’s pre-shutdown struggles included incomplete services and rising fees, frustrating clients like Dov Krausz and Galen King. Employer.com’s swift acquisition saved 250 of Bench’s 450 employees. Former Chief People Officer Jennifer Bouyoukos cited unsustainable cash burn as the closure’s cause. Employer.com vows to stabilize operations, but customers demand proof of reliability under new management.

Want to know more? Check out the source code on Inc.com.

Aspect Biosystems Secures USD $115M for Bioprinted Therapies

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Vancouver’s Aspect Biosystems has raised USD $115 million in Series B funding, advancing its work on bioprinted tissue therapeutics. Led by Dimension and supported by Novo Nordisk, Radical Ventures, InBC, and others, the funding will expand Aspect’s AI-powered bioprinting and therapeutic platform.

The company aims to deliver cellular medicines for metabolic and endocrine diseases, building on partnerships with Novo Nordisk and Canadian governments. CEO Tamer Mohamed lauded the investor support, while Dimension’s Nan Li called Aspect a leader in regenerative medicine. This milestone cements Aspect’s role in biotech innovation and its pursuit of transformative patient care solutions.

Want to know more? Check out the source code on Techcouver.

Humi Joins Global Player Employment Hero in $100M Deal

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Toronto-based Humi, a leading employment platform in Canada, has been acquired by global employment solutions provider Employment Hero in a deal surpassing $100M. The partnership merges Employment Hero’s global Employment Operating System (eOS) with Humi’s expertise in Canada’s unique employment landscape. Together, they aim to deliver an all-in-one payroll, HR, and benefits platform tailored to Canadian SMEs.

Humi CEO Kevin Kliman called the acquisition a “commitment to our customers,” while Employment Hero CEO Ben Thompson praised Humi’s deep market knowledge. Humi will remain Canadian-operated, continuing to empower local businesses through innovative, localized employment solutions.

Want to know more? Check out the source code on Techtalent.ca.

Neo Financial Faces Scrutiny Over Tencent Investment

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Neo Financial, a Calgary-based fintech startup, faces intensified scrutiny after Tencent, a reported key investor, was blacklisted by the U.S. Defense Department for alleged links to China’s military. Tencent led Neo’s recent $362-million Series D funding, securing a 10% stake. Neo seeks approval as a payments provider under Canada’s new Retail Payments Activities Act, which includes a national security screen.

The startup emphasized its Canadian control and client data protections. However, with foreign ownership under scrutiny, Neo’s application could face delays. Tencent denies military ties, calling its blacklisting a “mistake.” Neo serves 1.3 million customers and expects profitability in 2025.

Want to know more? Check out the source code on The Logic.

Calgary’s Thriving Tech Scene: Startups to Watch in 2025

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Calgary’s tech ecosystem is thriving, recognized as one of the top 50 emerging startup hubs globally. The city’s 78% job growth over five years outpaces other Canadian cities, showcasing its innovation-driven focus. Startups like Arbor, tackling carbon management, and Nimble Science, advancing GI research, exemplify this momentum.

Newcomers like Bidaya, simplifying RFP processes, and ResVR, transforming home design with VR, highlight Calgary’s diverse ingenuity. Established players like Showpass and Bōde continue to expand, driving economic diversification. With strong funding and global attention, Calgary is poised to lead in AI, biotech, and sustainable energy in 2025.

Want to know more? Check out the source code on Calgary.tech.

Financial Services Lead Canada’s M&A Revival

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PwC’s 2025 Canadian M&A Outlook predicts a gradual recovery in deal activity, with financial services and private equity sectors driving growth. Challenges persist, including Canada’s productivity crisis, stagnant capital investment, and geopolitical uncertainties linked to U.S. trade policy changes.

PwC leaders urge businesses to adopt technological transformation, such as AI and cloud-based solutions, to overcome barriers. Financial services lead the way, actively acquiring tech-enabled firms to optimize operations and enhance customer engagement. Sectors like healthcare tech and advanced manufacturing also see growth. Private equity is consolidating smaller firms to drive innovation, addressing economic transformation and boosting Canada’s competitiveness.

Want to know more? Check out the source code on Newswire.ca.

1Password Acquires Trelica to Advance SaaS Security

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Toronto-based 1Password has acquired Trelica, a leader in SaaS access management, to enhance its Extended Access Management (XAM) platform. The acquisition boosts 1Password’s ability to tackle Shadow IT by identifying unmanaged apps and automating access governance.

This move advances 1Password’s mission to secure workplaces without hindering productivity. CEO Jeff Shiner highlighted Trelica’s alignment with Zero Trust principles, enabling organizations to optimize SaaS spend and meet compliance standards like SOC 2. The acquisition positions 1Password as a leader in emerging XAM solutions.

Want to know more? Check out the source code on BusinessWire.

Canadian Tech Sees Nine-Figure Exit with Carbon6 Sale

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Toronto’s Carbon6 Technologies, an e-commerce software aggregator, is being acquired by Minneapolis-based SPS Commerce for $210 million USD ($301 million CAD). The deal, comprising 40% SPS Commerce stock, is expected to close in Q1 2025. Carbon6, which simplifies Amazon merchant operations through software tools and revenue recovery solutions, will bring SPS an estimated $40 million in annual revenue.

Co-founder Kazi Ahmed emphasized the acquisition’s potential to enhance offerings for first- and third-party sellers. Since its 2021 founding, Carbon6 has raised $102 million CAD and acquired 16 companies. This acquisition marks a significant nine-figure exit for Canada’s tech ecosystem.

Want to know more? Check out the source code on BetaKit.

Trane Buys BrainBox AI: Cleantech Goes Global

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Montreal’s BrainBox AI, a leader in AI-driven HVAC optimization, has been acquired by Trane Technologies. BrainBox, founded in 2019, uses generative AI to cut emissions and energy use, impacting 14,000 buildings like Brisbane Airport and Sleep Country. Trane, with a 40,000-building client base, plans to scale BrainBox’s innovations globally.

CEO Sam Ramadori emphasized BrainBox’s commitment to Montreal, maintaining its 190 employees post-acquisition. While the deal strengthens global climate tech, it raises concerns about retaining Canadian innovation. Ramadori urged stronger government support for scaling AI firms locally.

Want to know more? Check out the source code on CleanEnergy.ca.

Sitemate Targets Canada in $25M Expansion Push

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Australia’s Sitemate is transforming construction and industrial sectors globally with no-code tools that streamline operations. Fresh off a $25 million funding round, the company is prioritizing North America, with Canada central to its strategy. CEO Hartley Pike has spearheaded Canadian expansion, establishing offices in Vancouver and Toronto.

Sitemate’s flexible software adapts to local regulations, benefiting clients like Arcadis, Hatch, and Vinci. In 2024, users completed over 2 million forms via Sitemate’s platform, reflecting its widespread adoption. Pike aims to scale rapidly, hiring for roles in Canada, and expects the country to become Sitemate’s largest market by 2027.

Want to know more? Check out the source code on Techtalent.ca.