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Dye & Durham Ltd. DND-T has put itself up for sale, becoming the latest in a series of Canadian tech companies to consider finding a buyer after a rocky few years for the sector.

The legal software company said in a press release Tuesday that it has expanded the scope of its strategic review process to include a “a sale of the company, merger, divestiture of assets, or other strategic transactions.”

There is no timeline for any transactions, and no assurances that it will be sold, D&D said.

The company’s shares listed on the Toronto Stock Exchange (TSX) jumped 9.5 per cent after an initial report on D&D’s strategic review process, reaching $18.50 a share at market close. The company’s market capitalization is $1.23-billion.

The company is working with advisers to field interest from U.S.-based private equity firms and other suitors, Bloomberg reported midday Tuesday, citing unnamed sources, adding that the discussions are at an early stage.

In an after-market note to investors, BMO analyst Thanos Moschopoulos estimated that a formal takeout price would be in the range of $25-30, and raised his target price from the stock to $23 from $18.

He said a sale of D&D would likely generate considerable private equity interest, given the company’s diversified revenue mix and strong market position in many segments, but that finding a strategic buyer would likely be more difficult.

Dye & Durham provides software for legal and business professionals. The company made large stock price gains after its initial public offering in 2021, but concerns about its high debt levels and acquisition-based growth strategy have caused shares to slide in the following years.

The company cleared a legal hurdle related to an Ontario class-action lawsuit last year, but chief executive officer Matthew Proud and his brother, ex-chair Tyler Proud, are still engaged in a legal squabble over the company’s board composition. Meanwhile, several hedge funds have criticized the company’s alleged pattern of poor strategic decision-making, with one being given a board seat this month to allay those concerns.

D&D was the first of 20 tech companies to go public on the TSX in the early days of the pandemic. Nine more are in process of leaving the exchange.

It’s not the first time D&D has considered privatization. In 2021, a group of investors, led by its management team, offered to buy the company less than a year after it listed on the TSX. But the deal fell apart after shareholder pushback and challenges from regulators.

Payfare, a payment company based in Toronto, has also launched a strategic review after its biggest client didn’t renew, causing the stock to plummet.

Lightspeed Commerce, a Montreal-based point-of-sale and e-commerce software provider, is also considering an exit from public markets. It went public in 2019.

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