How Solotech entered the international market

Since Martin Tremblay became head of Solotech in 2017, the Québec-based company specializing in audiovisual and entertainment technology has implemented an ambitious growth plan. In just seven years, the company’s sales increased from $150 million to $650 million, despite a two-year pandemic that curbed its momentum.

Mr. Tremblay credits this success to a carefully planned acquisition strategy. When he took over, Solotech’s revenues came mainly from Canada, which accounted for 70% of sales. The company’s sources of income have since diversified: 46% from the United States, 36% from Canada and the remainder from the United Kingdom and other foreign markets.

Focus on growth with CDPQ

In November 2023, CDPQ acquired a minority stake in Solotech. This partnership aims to support Solotech’s acquisition and organic growth strategy.

Mr. Tremblay underscored the positive impact of this collaboration: “What I love is CDPQ’s ambitions for our company,” said the CEO. The people of CDPQ are very committed to Solotech. There’s a whole new energy here, with a brand-new player joining our established experience.”

“Our industry is in a consolidation phase, and Solotech intends to capitalize on this momentum. CDPQ has recognized this potential and is committed to supporting our growth and ensuring that it is carried out in a thoughtful and sustainable manner,” he added.

Collaboration with CDPQ is reflected in regular contact, discussions on potential acquisitions and strategic support. “It provides us not only with financial support, but also additional expertise and a valuable business network,” said Mr. Tremblay.

Two complementary divisions

Solotech operates through two major divisions: event solutions (concerts, shows, festivals) and permanent installations with system integration in places like hotels, railway stations, airports, etc. It also specializes in collaboration tools, conference rooms, digital displays and videoconferencing for its clients, which include companies, governments and educational institutions. Historically, these divisions have generated revenues equally. In recent years, however, the company has seen a significant shift in that balance.

“Today, the sales and integration market has taken over, accounting for nearly 55% of our revenues,” said Mr. Tremblay. This growth is due to the sheer size of this global market, estimated at over $300 billion, compared to the events market, which represents around $4 billion.”

Its structure means that the company can reach different market segments, ranging from the entertainment industry to corporate installations and from transportation infrastructure to places of worship in the United States.

Solotech’s main asset lies in its ability to offer a complete solution to all its customers and to support them in various types of projects. “We provide a full service solution. And that’s really what sets us apart,” he added. This global approach allows Solotech to boost customer loyalty over the long term. “Approximately 80% of our customers who initially rent equipment for an event end up asking us for permanent installations,” explained Mr. Tremblay.

Finding the right foothold

Over the past seven years, Solotech has made a dozen key acquisitions that have served as a springboard to firmly establish itself in new markets. “Our strategy is to gain a foothold through the companies we acquire. They become pillars that allow us to understand the specifics of these new markets and roll out our full range of services,” said Mr. Tremblay.

The 2018 acquisition of SSE Audio Group, “the UK’s leading player in audio services,” provided Solotech with a European presence. Today, it generates more than $100 million in sales annually.

Two years later, the Québec-based company pursued expansion in the United States by acquiring Pro Sound & Video, which specializes in audio, video, lighting and broadcast integration, just days before the pandemic disrupted the events sector. Pro Sound significantly solidified Solotech’s footprint in the United States, doubling its revenues since then.

In addition to geographic expansion, Solotech also focused on diversifying its expertise. In 2021, the acquisition of CBCI Telecom Inc. in Canada added specialized skills in collaboration tools, security systems and audiovisual integration, enabling Solotech to break into the corporate market.

ESG at the heart of shared values

Like CDPQ, Solotech is fully aware of the growing importance of environmental, social and governance (ESG) issues. It therefore formalized its sustainable development approach about a year and a half ago. Although certain ESG practices have long been rooted in the company’s DNA, a recent diagnosis identified new development opportunities. “Currently, our team is pulling out all the stops on the environmental front, so that we can have a more comprehensive, more balanced strategy,” explained Christine Latour, Chief Marketing Officer.