Citylogix

From executives to business owners: Make your business acquisition a success with customized financing

BDC was the only bank that looked beyond traditional solutions to finance our buyout. They delivered a truly bespoke approach, with flexible financing and payment terms adapted to our business model. There’s nothing like having a financing partner who thinks like a business owner.

Citylogix uses LiDAR, high-definition cameras and AI to enable municipalities to create digital twins of their road networks, optimizing planning and extending infrastructure service life.

About the company

A global pioneer in AI for public infrastructure and smart cities, Citylogix serves over 450 municipalities across North America.

Location: Montreal, Quebec

Industry: Technology, AI

Entrepreneur challenge

In 2019, shareholders of the Boston-based tech firm recruited two young Montreal entrepreneurs to accelerate growth and establish a global presence. Over the next five years, Jon-Erik Dillon and Antoine Ayotte structured the company, cemented its reputation with municipal clients and doubled revenue growth. In 2024, after lengthy negotiations, they reached an agreement to acquire 100% of the company and move its headquarters to Canada. They chose their hometown of Montreal, known for its deep tech talent pool and density of AI research centres. At the helm of a company that was innovative and profitable, but with few of the tangible assets required in traditional bank loans, the two buyers needed a flexible financing partner to buy out the company and fuel its continued rapid growth.

BDC expertise

The specialists from BDC’s Growth and Transition Capital (GTC) team worked closely with the two buyers to understand the complexities of the transfer and structure robust, flexible financing for the acquisition. The financing package gave the new owners the freedom to align the loan with their cash flow to protect their working capital and preserve the liquidity needed to ensure Citylogix’s rapid growth. BDC also supported the company throughout negotiations to bring a new minority investor on board.

Results

Relocation of a global tech innovator to Canada
30%+ revenue growth immediately after the acquisition
Strategic partnership with CRH, a world leader in construction materials, as a Citylogix minority shareholder
Workforce tripled from 30 to 85 employees, including 40 at the Montreal headquarters
Accelerated growth with new projects in Quebec and Europe

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