(Toronto) Newly IPO, Coveo has identified more than 300 potential acquisition targets, but artificial intelligence research technology specialist doesn’t need to trade to grow, says CEO Louis Têtu .
The Quebec-based company made its debut on the Toronto floor on November 18 at a price of $ 15 per share, which enabled it to raise funds of $ 215 million. Mr. Têtu was on the Toronto Stock Exchange on Wednesday for the symbolic opening of the session.
The funds collected will allow Coveo to fund “without promising anything” various growth initiatives. If the projects in question have not yet been determined, acquisitions could be on the menu, explained the CEO in an interview.
“We have on our radar maybe 300 companies of different sizes that we follow around the world, which could potentially be candidates that complement our strategy. This will be a decision the Coveo team will have to make over the next few years. ”
However, making an acquisition is not an end in itself. “We will continue to look at these opportunities, but we are not a company that is doomed to acquire, adds Mr. Têtu. Basically, Coveo’s internal growth is very solid and we can complement that with acquisitions. ”
Since its inception in 2005, Coveo has only made two acquisitions, the first in 2019 and the second last October. The recent acquisition of Qubit, a London-based company specializing in personalizing the digital experience, is a great example of the company’s goals.
“First, we’ll look for their technology. We are able to integrate it into our platform. We always stay focused on the strategy of having a single platform. And subsequently, that gives us access to new markets. ”
A successful entry
This is a successful first public call for Coveo. The company, which issued a limited number of shares on the stock exchange (13.7% of outstanding securities) for a value of 215 million, received for the equivalent of more than 1 billion in demand, well beyond that the number of shares available.
Mr. Têtu insisted on recalling that the existing shareholders did not take the opportunity to liquidate part of their stake. The Fonds de solidarité FTQ, Investissement Québec and OMERS (the pension fund for municipal employees in Ontario) are among the shareholders.
If he has always said that he did not necessarily have a preference between obtaining financing from private investors or through an initial public offering, Mr. Têtu recognizes that having publicly traded stocks has its advantages.
This is particularly the case for the remuneration per unit of share subject to restrictions which helps to attract and retain employees. “A company like Coveo has to fight. Our competition for talent is Facebook or Google. ”
With its 750 employees, Coveo serves more than 475 customers, such as Adobe, Manulife or Rolex. In addition to its head office in Quebec, the company has offices in Montreal, London and San Francisco.