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CIBC purchases tech investment portfolio

CIBC World Markets Corp. has agreed to buy a portfolio comprised of technology companies from technology services firm Accenture. The deal, involving about 80 early- to mid-stage companies mainly in the software sector, was announced Tuesday.

CIBC World Markets is the investment banking arm of Toronto-based Canadian Imperial Bank of Commerce.

Under the agreement, CIBC will purchase a 95 per cent share in the portfolio, with Accenture retaining a five per cent stake. The deal is expected to be complete by the end of this year.

In a statement, Accenture said it was divesting itself of the portfolio to reduce volatility in future earnings and is discontinuing direct venture capital investing. The company doesn’t expect to take any additional charges involving the transaction.

Accenture’s Canadian Web site is at http://www.acenture.ca.

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