A public e-procurement services company that services local and state government organizations is going private. Mdf commerce has been acquired for C$255 million (US$189 million) by KKR, a  global investment firm.

The deal is subject to shareholder approval. Mdf commerce is a Canadian provider of ecommerce and e-procurement services to public sector organizations — primarily in the U.S. It has approximately 6,500 public sector buying organizations using its applications and services for e-procurement.

“We are excited to strategically partner with KKR to accelerate our expansion and scale our industry-leading platform even further,” says mdf commerce CEO Luc Filiatreault. “We look forward to leveraging their relationships, resources, and expertise as we execute on our strategy and explore new projects and opportunities that will improve mdf commerce’s service offering and continue growing market share.”

Acquisition takes mdf commerce private

KKR is investing in mdf commerce through its Ascendant Strategy, which invests in middle-market businesses in North America.

“We look forward to the enormous opportunity ahead for the mdf commerce e-procurement platform as governments increasingly embrace digital solutions,” says KKR partner John Park.

For its third quarter of fiscal 2024, which ended Dec. 31, Vancouver, Canada-based mdf commerce posted revenue of $30.2 million. That represented a decrease of $1.5 million — or 4.6% — from $31.7 million in Q3 fiscal 2023. Net loss was $4.2 million for the third quarter of fiscal 2024. That compares with net earnings of $15.1 million in 2023, which included a $22.9 million gain on the disposal of InterTrade, an electronic data interchange (EDI) and B2B integration program for ecommerce platforms.

InterTrade was acquired by SPS Commerce in October 2022.

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