Givex sale shows value of Canadian tech juniors, Paradigm says

Another one bites the dust.

Canadian investors lost another on Monday as fintech upstart Givex (Givex Stock Quote, Chart, News, Analysts Financials TSX:GIVX) announced that it had agreed to be acquired by Shift4 Payments for $200-million. But one analyst says this spells opportunity for investors who want to scour the space for value.

“Givex has a considerable footprint around the world, which will dramatically increase Shift4’s overall customer base,” Shift4 president Taylor Lauber said. “At the same time, their gift card and loyalty solutions are second to none and will add significant value for our customers, creating stickier relationships and enhancing our overall value proposition.”

Rosenberg had not initiated coverage of Givex but had highlighted the company as an emerging growth opportunity in his Technology Watch List. The analyst, in a research update August 26, said this development underscores the value that exists in smallcap innovation sector stocks in this country.

“Givex joined our Watch List on account of its strong growth, differentiation and execution in the highly competitive payments sector,” he wrote. We see the company’s payments and loyalty offerings as highly complementary with Shift4. The transaction is one of several that we have seen over the past year (HS Govtech, MDF Commerce, Copperleaf Technologies, Q4 and others) and points to continued value we see in Canadian small-cap technology names.”