US Welding Giant ESAB to Buy Quebec Tech Firm Eddyfi for $1.45B

A rare billion-dollar tech deal has landed in Quebec, as US-based welding and fabrication specialist ESAB agreed to acquire Quebec City-based inspection technology company Eddyfi for $1.45 billion USD (around $2 billion CAD), one of the province’s largest technology exits in recent years.

The acquisition places a significant valuation on Eddyfi, slightly above the market capitalisation of Montreal-based e-commerce firm Lightspeed Commerce, and marks one of only a handful of billion-dollar deals in Quebec since fintech company Nuvei sold in 2024.

Quebec jobs and HQ to stay

ESAB said it has made “firm commitments” to maintain Eddyfi’s workforce and headquarters in Quebec City, a key point as political and economic scrutiny intensifies around foreign takeovers of Canadian technology firms.

Eddyfi founder and chairman Martin Thériault said the deal secures the company’s future while preserving its roots in the province.

“ESAB brings the scale, resources and long-term commitment needed to support our people, strengthen our impact with customers and honour the legacy we have built,” Thériault said, calling the transaction “the beginning of a new chapter” for the company.

What Eddyfi does

Founded in 2009, Eddyfi develops non-destructive testing (NDT) inspection technology used by engineering firms and industrial operators across sectors including aerospace, energy, mining, power generation, and transportation.

Its tools allow companies to inspect critical infrastructure — such as pipelines, aircraft components, rail systems, and power plants — without dismantling equipment. Eddyfi’s portfolio includes ultrasonic testing devices, robotics, drones, and advanced sensing technology designed to detect cracks, corrosion, or structural weaknesses that are invisible to the naked eye.

The company employs more than 1,000 people and serves customers in over 110 countries, with clients ranging from oil majors like Shell to industrial giants such as General Electric, as well as operators of major public transport systems including the London Underground.

Eddyfi is backed by Quebec pension manager La Caisse and Montreal-based private equity firm Novacap.

Why ESAB wants Eddyfi

ESAB said the acquisition significantly expands its total addressable market and deepens its exposure to high-growth industries including aerospace, defence, nuclear energy, and civil infrastructure.

The company expects Eddyfi to generate approximately $270 million USD in revenue and $80 million in adjusted EBITDA in 2026, contributing meaningfully to ESAB’s earnings profile.

ESAB president and chief executive Shyam P. Kambeyanda said the deal strengthens the group’s global footprint while adding advanced inspection capabilities to its portfolio.

Deal structure and timing

The transaction will be funded through a mix of cash on hand, debt, and $318 million USD in fully committed equity, ESAB said. The deal is expected to close in the second quarter of 2026, subject to regulatory approvals.

Following the acquisition, Eddyfi will continue operating with its current leadership team, product roadmaps, and commercial commitments, ensuring continuity for customers and employees.

The sale follows Eddyfi’s parent company, Previan, splitting into two businesses last year — Eddyfi and NDT Global. While refinancing was considered, the size and certainty of ESAB’s offer ultimately led to a full sale.

For Quebec’s technology sector, the deal underscores both the global demand for advanced industrial technology and the growing role of Canadian firms in critical infrastructure and safety markets worldwide.