Ignite Services Inc., CCAA

Ignite Services Inc., a Waterloo, Ontario-based digital insurance brokerage, along with certain related companies, obtained CCAA protection on October 30, listing approximately $72.7 million in liabilities. The company has been operating at a loss since its inception in 2018, with cumulative losses totaling over $59.8 million. The company’s financial difficulties were due in part to operating as a multi-carrier insurance brokerage with suboptimal rates being offered by insurance companies, significant customer acquisition costs in the insurance brokerage industry generally, and significant capital investments in its technology. In August 2022, Primary Group Limited, the company’s ultimate parent, decided to stop funding the company’s losses. With no means of operating the business without additional capital, Ignite launched an informal sales process in May 2023. The process led to a purchase agreement with Southampton Financial Inc., which will be finalized as part of the CCAA proceedings. Primary is providing a DIP loan. KPMG is the monitor. Counsel is Osler for the monitor, Stikeman Elliott for the Ignite Group, Norton Rose Fulbright for Primary, Dentons for Southampton and Fasken for Aviva Insurance Company of Canada.

By: Dina Milivojevic