Quebec firm acquires Regina startup Vivvo
Move will allow tech company to take advantage of expanding market, CEO says
Rory Cain is confident the decision to sell will be a boon to the future of the startup he co-founded in 2015.
Last month it was announced that Vivvo Application Studios had been acquired by the Quebec-based company Converge Technology Solutions. It is the 16th acquisition by the company since 2017.
“I think we're going to see pretty significant growth in Vivvo in terms of the things that we want to go after and the things that Converge are willing to invest in to go after them,” said Cain, who will now move into the role of CEO.
The deal came together in a matter of weeks. Vivvo had already worked with Converge on a few different projects for the federal government. That's not to say the decision was made lightly.
Cain referred to Vivvo as the founders' “baby,” and while the company had gotten several inquiries from venture capital firms over the years, it was self-sufficient and not in a rush to sell.
However, Cain said being a part of Converge will bring a number of benefits when it comes to operating in the market Vivvo navigates, which has seen major changes during the COVID-19 pandemic.
Vivvo specializes in the verifiable credential space, and helps governments move client-facing services online. Cain called it the digital equivalent of a driver's license, which is used to verify one's identity when accessing services — such as having to provide ID at a cannabis store.
These digital credentials could enable residents to prove they have a health card, own a business, or if they've been vaccinated against COVID-19. Vivvo refers to this as its “trust platform.”
According to a press release from Converge, Vivvo will soon be leveraging its platform to develop a solution that could be used to validate proof of COVID-19 vaccination, and will be submitting proposals to all levels of governments in Canada.
Vivvo currently works with three provinces and territories, as well as a city in Ontario. It has also done work for the Saskatchewan and federal governments.
Vivvo is a small company, employing approximately 20 people. When the pandemic hit, the market began accelerating due to the rush to get services online. Vivvo's leaders realized they didn't want to miss out.
“Converge really represented an opportunity to take some risk off the table for us, but also to really pursue a quickly expanding market with a much larger entity with several compatible operational lines of business that we can tap into. So it just made a lot of sense the more we looked at it,” said Cain.
The decision to be acquired was also partially driven by challenges in the labour market of Saskatchewan's technology sector.
“Human capital is the No. 1 for a company like ours, and this market just does not have the depth and talent required to take something to that next level. It simply doesn't,” said Cain.
Now that it's able to tap into Converge's partner network and salesforce, Vivvo will have new market opportunities in the United States as well. Having all these resources will allow Vivvo's employees to concentrate on its technology.
“We're not manufacturing widgets. It's not a professional services firm. It is about building and selling innovation, and that's driven by people,” said Cain.