Dye & Durham angered customers after buying Teranet unit and hiking prices. Now, Teranet wants to win them back
Dye & Durham Ltd. DND-T faces growing competition for its core Canadian business, which observers say is due to the Toronto real estate software firm's former free-wheeling acquisition strategy and aggressive price hikes that angered customers and created opportunities for rivals.
In April, Ontario land registry services giant Teranet Inc. bought control of ReadyWhen Tech Inc., a B.C. startup that launched its GoVeyance software for processing real estate transactions (known as conveyancing) after competitor D&D hiked prices for its service in its province by up to 563 per cent in November, 2021. ReadyWhen has 200 real estate law firm clients in B.C., many of them former D&D customers.
Teranet announced Wednesday that it would expand GoVeyance to Ontario. It marks a return to the business for Teranet, owned by the Ontario Municipal Employees Retirement System.
In December, 2020, Teranet sold its conveyancing software business, DoProcess LP, to D&D. which paid $530-million, an exorbitant 24 times operating earnings. D&D promptly hiked prices by more than 400 per cent in Ontario.
'Five years ago, we were presented with a unique and compelling business opportunity' to sell DoProcess, at a 'richly valued' price, Teranet chief executive officer Elgin Farewell said in an interview last week. 'It was an imminently rational business decision.'
By 2022, Teranet wanted back in, but had to wait until its non-compete agreement ended. The goal, Mr. Farewell said, is for the company to repeat what it did after buying DoProcess in 2008: turn a small vendor into a national player.
'It's a compelling opportunity for us,' he said.
Dye & Durham names LexisNexis veteran as CEO as predecessor pushes for sale of company
Another rival, LawLabs Inc. of London, Ont., sold in May, 2023 to Australian real estate software giant ATI Global Ltd. ATI-N, a year after launching its Convey software in Ontario in response to D&D's price hikes. LawLabs now has more than 500 customers and recently started cross-selling with ATI's Leap legal practice management software (D&D is suing LawLabs for copyright infringement).
D&D's price action 'brought folks into the space that might otherwise have no business doing that,' LawLabs CEO Harrison Kelly said in an interview Tuesday.
'Canada is home to several legal tech companies' that compete with D&D, said the company's new CEO, George Tsivin, in a e-mailed statement Tuesday.
'While many of these competitors offer lower prices, they often provide less value and fewer software capabilities. Our software stands out in quality, and with our renewed focus on customer satisfaction and product innovation, we are confident that we will maintain our leadership position.'
D&D's conveyancing software business, which accounts for an estimated 30 per cent-plus of operating earnings, 'is probably the key area of concern right now for investors' owing to competition and real estate market weakness, said BMO Capital Markets analyst Thanos Moschopoulos said in an interview this week.
'Clearly they had been too aggressive in the past with regard to pricing and contract terms. It's a meaningful potential threat when you have a company like Teranet backing an emerging competitor.'
D&D has been attempting to transform its image since the departure of former CEO, Matthew Proud. On his watch, the company expanded aggressively with a string of acquisitions and sharp price hikes. The DoProcess deal gave D&D, which had previously bought three other Canadian conveyancing software providers, a market stranglehold in several provinces, and it quickly hiked prices.
D&D even broke a promise to DoProcess's Ontario customers to freeze prices for three years after the first hike, increasing them again to $249 in 2022 (from $25 before it bought DoProcess) for any customer that wouldn't lock into a three-year contract. Despite their opposition, D&D customers ultimately pass on higher fees to their clients.
The company's actions didn't just make customers unhappy. Its debt-fuelled acquisition binge and other issues raised the ire of investors who pushed for changes at the board and management, culminating in Mr. Proud's departure and the election of a new board put forward by activist hedge fund Engine Capital in December.
Engine promised to restore trust between D&D and customers by offering better service, new pricing tiers and to keep further price increases to a minimum.
In April, interim D&D CEO Sid Singh wrote to clients recognizing 'that we haven't always been the best partner, and we understand it will take time for you to see that our words are backed by concrete actions,' according to an e-mail obtained by The Globe and Mail.
Mr. Singh promised the company would offer more flexible terms and explore 'new and better approaches to pricing,' an issue given that some firms committed to a set number of transactions to lock in lower prices – but have not had the volumes to justify the rate.
GoVeyance was founded in 2020 by Jessie Vaid, a B.C. notary, to build software for people to store essential information to aid the probate process after they die.
After D&D's B.C. price hikes in November, 2021, Mr. Vaid said 'my colleagues reached out and said, 'Jessie, can you help us out? We don't want to be tied to a product that doesn't allow us to hear our voice.' The mind started racing and we thought, 'How can we build something my colleagues would be interested in?''
Mr. Vaid sold his practice in 2023 to focus on GoVeyance. The company charges $100 per file to B.C. clients, well below D&D's rate. It hasn't yet set pricing for Ontario.
Mark Giavedoni, real estate committee chair with the Federation of Ontario Law Associations, said in a statement Tuesday that 'more competition in the real estate technology is welcome.' But given past consolidation and subsequent price hikes, he said, 'lawyers are leery of trusting these players for fear of this happening again.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
an hour ago
- CTV News
Ontario government investing nearly $2.2 million to support road repairs on Huron Church Road
A screenshot of the intersection of Industrial Drive and Huron Church Road. (Source: Google Maps) The Ontario government is investing nearly $2.2 million in new funding to support road repairs along a short stretch of Huron Church Road in Windsor. The province will spend $2,181,352 to help the city rehabilitate Huron Church from Pool Avenue to Industrial Drive, including Industrial Drive signaling intersection updates. The funding is being delivered through the 2025-26 Connecting Links program, which helps maintain vital roads and bridges. A connecting link is a designated municipal road or bridge that connects two ends of a provincial highway through a community, or to an international border crossing. This year, the Ontario government is investing $45 million in 29 projects to repair roads and bridges in 27 municipalities across the province. 'This new phase of funding shows our government's continued commitment to modernizing Huron Church Road – a critical link for travellers and trade,' said Andrew Dowie, MPP for Windsor-Tecumseh. 'By protecting Ontario's infrastructure along the Highway 3 corridor, we're securing the long-term future of Canada's busiest border gateway and supporting the prosperity of the Windsor-Essex region.' - Written by Rusty Thomson/AM800 News.
CTV News
2 hours ago
- CTV News
MPP Jill Dunlop announces Ontario's upgrade for local community centre
MPP Jill Dunlop made a stop in Ramara Township, Ont. to share a $150,000 investment that will protect jobs and upgrade the local community centre on June 14, 2025. (Supplied) MPP Jill Dunlop made a stop in Ramara Township Saturday to share a $150,000 investment that will protect jobs and upgrade the local community centre. This investment is part of Ontario's $200 million Community Sport and Recreation Infrastructure Fund (CSRIF), a provincewide initiative that helps communities revitalize local facilities, grow the economy and promote active, healthy living across the province. 'I'm thrilled to congratulate the Township of Ramara on receiving this important funding through the Community Sport and Recreation Infrastructure Fund,' said Jill Dunlop, MPP for Simcoe North. 'This provincial investment will support much-needed repairs to the community centre roof and activity grounds, ensuring safe and accessible spaces for residents of all ages. Our government is committed to strengthening local infrastructure and supporting vibrant, healthy communities here in Simcoe North and across Ontario.' CSRIF is an application-based program providing investments over two years. It supports municipalities, Indigenous communities, and non-profit organizations. It does this by repairing and rehabilitating existing sport and recreation facilities and spaces, and building new or transformative sport and recreation infrastructure. Every year, Ontario invests nearly $32 million in community recreation programs to help achieve healthy communities across the province. 'At a time when Ontario families are facing rising costs due to tariffs, our government is proud to support organizations focused on delivering better services for people while breaking down barriers and creating opportunities for children and young people,' said Neil Lumsden, Minister of Sport. 'With investments in infrastructure like this, we are protecting Ontario jobs, strengthening our communities and building a more resilient and self-reliant economy.' According to Dunlop, sport contributes more than $7.5 billion to Ontario's economy every year, creating thousands of good-paying jobs in every corner. 'On behalf of the Township of Ramara, I want to sincerely thank the Province of Ontario for this important investment through the Community Sport and Recreation Infrastructure Fund,' said Mayor Basil Clarke, Township of Ramara. 'The Ramara Centre is a cornerstone of our community and a place where residents of all ages come together through recreation, programs, and events year-round. This funding will allow us to continue improving and maintaining a facility that is safe, accessible, and welcoming to all.'
Global News
2 hours ago
- Global News
Progress on lifting Trump's tariffs on Canada ‘not fast enough': LeBlanc
The cabinet official leading Canada's negotiations with the Trump administration says talks on removing tariffs aren't going fast enough, pouring cold water on the hope a deal will be announced at this week's G7 summit. Dominic LeBlanc, the minister responsible for Canada-U.S. trade, says that while conversations on a new economic and security partnership are 'frequent and constructive … we don't have the outcome we want yet' — particularly the lifting of recently doubled tariffs on steel and aluminum, as well as duties imposed on the auto sector and other goods. 'I'm hopeful we'll get there, but it's not fast enough,' he told Mercedes Stephenson in an interview that aired Sunday on The West Block. 'Our hope was that we would have made more progress before the president arrives in Alberta for the G7. We haven't hit that sweep spot.' Story continues below advertisement U.S. President Donald Trump is set to meet with Prime Minister Mark Carney when G7 leaders gather in Kananaskis, Alta., on Sunday for three days of talks. All eyes will be on whether a trade agreement or a framework of a deal can be reached at the summit. The two leaders have spoken directly 'on a number of occasions' since their meeting last month at the White House, LeBlanc confirmed, including 'informally on a range of issues.' 'Those conversations, (from) my understanding, aren't exclusively on one particular subject,' he said. The G7 will provide 'an opportunity to continue that conversation,' he added. 1:00 U.S. ambassador to Canada hints at progress on trade deal Reports of the behind-the-scenes talks between Carney and Trump had raised hopes that a deal was imminent. Pete Hoekstra, the U.S. ambassador to Canada, would neither confirm nor deny reports last week that a deal framework was in the works, but expressed optimism that the talks were bearing fruit during a fireside chat with Stephenson at the Canadian Club of Ottawa. Story continues below advertisement LeBlanc also said he's 'eternally optimistic,' but warned time is running out to secure a deal before Canada strikes back at Trump's latest tariffs. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'I believe that the economic damage the Americans are doing to themselves will at one point force a change in policy,' he said, 'but we understand the reasonable frustration of Canadian businesses and workers. 'If we conclude in a short period of time that we're not close to a deal, obviously, as we've said, the country will look at what might be further measures to retaliate against that doubling of the steel and aluminum tariffs.' The minister would not say what those countermeasures may be, or if the government considers the G7 summit a deadline. Canadian industries and provincial politicians like Ontario Premier Doug Ford have been pushing Ottawa for new counter-tariffs on the U.S. Canada has already put tariffs on $60 billion worth of U.S. goods, a move LeBlanc acknowledged 'is not without challenge for the Canadian economy' and is further fuelling the desire to resolve the dispute 'as quickly as possible.' 4:06 Labour advocates urge feds to retaliate against U.S. tariffs LeBlanc — one of several key ministers negotiating with their Trump administration counterparts — said he has made the case to U.S. Commerce Secretary Howard Lutnick and other administration officials that co-operation on shared issues like defence can't happen 'at the same time as they're hammering our economy with these punitive tariffs.' Story continues below advertisement Lutnick, Hoekstra and other officials have previously said tariffs on Canada will likely stay put under any future deal, even at a lower rate. Trump has imposed a 10 per cent baseline tariff on nearly all global trading partners, which remains in place under a new trade framework with the United Kingdom that was announced last month. LeBlanc said he's ensuring talks with the U.S. remain 'collaborative and constructive' despite the tensions at play under Trump. Despite renewed efforts to diversify Canada's trading partners and shore up the domestic economy, he said Canada doesn't seek to break away from the U.S. entirely. 'They're our most important economic trading and security partner, and geography means that will always be the case,' he said. 'My approach (is that) being belligerent or sort of confrontational in a way that's not particularly constructive, I don't think advances the case. 'The Americans, we hope and believe, will change these decisions because it's in their economic and security interest to do so.' Modi invitation to G7 'reasonable decision' The opportunity to secure and bolster economic partnerships with other countries will be a major focus for Carney at the G7 summit, beyond the meetings with Trump. Story continues below advertisement LeBlanc said that was the main impetus for inviting Indian Prime Minister Narendra Modi to the summit despite allegations that Modi's government has been involved in the murders, attempted murders and surveillance of Sikh nationals on Canadian soil. 3:21 Indian agent alleged to be behind Jagmeet Singh surveillance The invite has earned Carney criticism from Sikh diaspora groups, opposition MPs and even members of the Liberal caucus. '(Carney's) responsibility as chair of the G7 is to have a conversation around economic security involving things like critical minerals, involving new and emerging markets that are in the interest of G7 partners,' LeBlanc said. 'So an invitation like that to a significant economic player in the person of the prime minister of India is not unusual. 'That being said … there are investigations that are properly in the hands of police authorities and perhaps ultimately prosecutors, if that's where these things go, that can also exist at the same time as a conversation takes place around economic and global security issues. Story continues below advertisement 'We think that's a reasonable decision to take.' Modi's invitation was given renewed scrutiny last week after Global News revealed that a suspected agent of the Indian government was surveilling Jagmeet Singh, who was placed under RCMP protection in late 2023 while he was serving as leader of the NDP. The NDP called on Carney to revoke Modi's invitation following the report. LeBlanc, who was public safety minister at the time Singh was put under police protection, told Stephenson he continues to have faith in the RCMP to investigate foreign interference and protect political leaders and diaspora groups. 'The RCMP, in my view, do terrific work in dealing with this, and that work continues,' he said.
