SCL Elements acquired by Schneider Electric SA – Espresso Capital provides standby credit facility

Espresso Capital Partners (ECP) recently structured a Standby Credit Facility for the benefit of Montreal-based SCL Elements Inc. (http://www.can2go.com). The facility provided the founders and management team of SCL Elements added flexibility during the negotiations of the sale of the company to Schneider Electric SA. SCL Elements was subsequently acquired by Schneider Electric SA –http://www.pehub.com/183061/vc-backed-scl-elements-acquired-schneider-electric/.

SCL Elements Inc. provides building automation solutions for comfort and energy efficiency in commercial buildings. Marketed under the umbrella of the CAN2GO family of products and solutions, SCL Elements works with systems integrators, resellers and OEM manufacturers around the world to offer wired/wireless building automation solutions that optimize energy consumption while increasing the comfort of building occupants.

The company secured a Series A round of Financing in the fall of 2011 led by the Westly Group, a US-based VC investor and has made significant progress over the last 12 months. “Espresso has been an excellent financing partner” said Simon Leblond, President and CEO of SCL Elements. “Espresso Capital proved to be responsive to our particular needs at a critical point in our company’s stage of growth.”

The Facility provided a ready source of non-dilutive funding, if required, giving SCL Elements more flexibility to fund its working capital needs as it continued to expand its customer base while it achieved a key company milestone. Espresso Capital is pleased to have played a role in helping another great Canadian entrepreneur fund his company’s operations by providing an innovative capital-efficient funding solution.

Espresso Capital Partners (ECP) provides short to medium term financing solutions to companies in the knowledge-based sector across Canada. ECP provides technology companies with innovative growth funding solutions, including SRED Loans, Lines of Credit and SaaS RevenueLoans. Through a combination of real-world experience and a deep network in the tech sector, Espresso Capital Partners is able to provide entrepreneurial risk capital at key stages of a company’s growth cycle.

Why Borrow Against Your SR&ED claim?

As former executives, and current directors, of technology focused companies, the partners of Espresso Capital know what it’s like to bob up and down on the rough seas of uneven cash flow. Growing companies require cash and most companies typically think of equity as the source of that cash. What we didn’t realize initially when starting Espresso, was the variety of reasons why companies need short term capital. I wanted to point out the innovative ways some of the companies we have assisted have used their Espresso SR&ED financing over the past year: Continue reading