Technology clusters are often defined by their most visible successes. However, their deeper value lies in the talent, relationships and institutional knowledge that are not so obvious at first glance.
Ottawa’s history in telecommunications, software, defence and space has produced engineers, entrepreneurs as well as operators with experience of complex, mission-critical problems. This expertise continues to influence businesses in the city.
During our two-day visit to Ottawa, we met with three Canadian companies: Kinaxis, Calian Group and Telesat. One sells supply-chain software. Another provides defence, space and essential services. The third is building a satellite network of strategic importance to Canada.
A broader impression emerged from the trip. In particular, federal priorities around defence, connectivity and sovereignty felt closer to economic reality. We heard about projects that are actually moving forward, not just policy rhetoric. The intersection of technical talent and government decision-making in Ottawa is difficult to appreciate from a distance.
Kinaxis: Testing the AI Narrative
Kinaxis helps large manufacturers coordinate their supply chains by balancing demand, inventory and production across complex global networks. Our visit coincided with an important moment for the company: it has a new chief executive, and the software industry is debating whether artificial intelligence will strengthen or weaken established platforms.
One of our objectives was to meet the new leader, understand his approach and determine whether his vision aligned with our perception of the business’s needs. The meeting was energizing. Management did not present themselves as a software company on the defensive.
They described how they had reversed their past maintenance-heavy development mix. Around three quarters of their efforts are now focused on new products, including a dedicated team exploring how large language models and generative AI can be embedded in the platform. This supported our core thesis that supply-chain planning can reduce inventory, missed shipments and disruption costs, making the software difficult to cut even when budgets tighten.
AI remains a two-sided issue. We are cautious about treating complexity or slow implementation as durable competitive advantages. If AI lowers switching costs or makes alternatives easier to develop, some of these advantages could be undermined. Therefore, Kinaxis must win based on measurable customer value, not inertia. Meeting the new chief executive helped us to judge whether the leadership team understands this distinction.
Calian: Trust, Technology and the Portfolio
Calian’s areas of expertise include military training, defence, health services, satellite ground systems, nuclear services, information technology and cybersecurity. It is increasingly tied to government and defence spending. The company has built its relationships with the Canadian government and the Department of National Defence over decades. Conversations during the trip also suggested that federal priorities are beginning to translate into active procurement.
At Calian’s global navigation satellite system antenna operation, we observed specialized technology used in space, aviation, drones and communications. While this 2020 acquisition is not the largest part of the company, it demonstrated that Calian possesses more proprietary engineering and intellectual property than its broad description might suggest.
The more revealing details were operational. The facility leader described rapid volume growth since the acquisition. In fact, the site is running out of room and may require additional capacity nearby. After four years without price increases, the business also appeared to have room to raise prices. These observations made the demand more tangible than a segment growth rate could.
The operation also demonstrated what a successful acquisition can look like. Calian bought a local, founder-led business, providing it with a larger platform while maintaining its technical focus. The team spoke highly of Calian’s leadership. We also met with a former Calian executive, which allowed us to compare the current corporate narrative with an experienced outside perspective.
Customer concentration, procurement delays and portfolio complexity remain real risks. Nevertheless, the visit clarified precisely what is in the company’s portfolio, why certain capabilities may be underappreciated, and how defence demand is affecting the business on the ground.
Telesat: Making the Future More Tangible
Telesat has been part of Canada’s communications infrastructure for decades. The company’s future success hinges on Lightspeed, a planned constellation of satellites in low Earth orbit that will provide secure, high-capacity connectivity. This creates an unusual investment profile: while the legacy satellite business is visible, it is also declining, and much of the future value rests on a project that is not yet generating meaningful revenue.
Government financing reflects more than just commercial ambition. Lightspeed also touches on Canadian sovereignty, Arctic connectivity and allied security. A countdown display at the company’s headquarters made the program timeline more tangible. The project felt less like a distant concept and more like an organization working towards specific milestones.
The visit also broadened our perspective on MDA Space, another of Pembroke’s holdings and a major supplier. Execution risk remains substantial: Lightspeed must stay on schedule and within budget, compete in a market reshaped by Starlink, and offset the decline of Telesat’s legacy broadcast business. Meeting the people responsible did not eliminate these risks, but it made them easier to assess.
What the Ottawa Visit Reinforced
Although Kinaxis, Calian and Telesat operate in different markets, each company draws on an Ottawa ecosystem built around technical talent, complex systems and long-standing institutions. Ottawa is not only Canada’s political capital. It is also where the worlds of software, defence, space and public policy converge.
The visits did not dramatically change our investment theses. They made them more specific. At Kinaxis, we evaluated a new capital allocator and shifting development priorities. At Calian, we examined capacity constraints, pricing potential and acquisition stewardship. At Telesat, we linked a national legacy to a program moving towards physical execution, deepening our understanding of MDA Space in the process.
These are difficult things to judge from filings alone. Being on the road helps us differentiate between rhetoric and activity, strategy and posture, as well as corporate narrative and the experiences of employees and former executives. This does not replace financial analysis. However, it gives us context that can sharpen the questions we ask, the assumptions we test and the judgment we bring to each investment decision.
