SEB has signed a letter of intent over the transaction and the buyer will be Golden in conjunction with Paradigm's senior management.
The precise details were not disclosed but the purchase price includes an amount of cash, cancellation of $3mln of Paradigm preferred shares owned by Golden, which are convertible into SEB common shares, and a working capital adjustment, the group said.
The cash proceeds from the sale will be used to repay a debt of around $8mln and reduce revolving credit facilities.
"SEB has made the strategic decision to focus on its Canadian Federal Government business and the "InsureTech" sector, leveraging its technological resources and platforms to deliver to corporate and government clients world-class insurance and benefits administration and processing solutions," said John McKimm, the president and chief executive of SEB.
"SEB will retain a strategic business relationship with Paradigm and Golden post-closing, particularly as it relates to opportunities for deployment of SEB's benefits administration and processing solutions in the Saskatchewan and Manitoba markets."
The closing of the deal is targeted for November 30, this year, subject to final due diligence and regulatory and board approval.
Golden Opportunities Fund is a venture capital fund launched as the first provincial fund in Saskatchewan in 1999 and later in Manitoba in 2009.
It is managed by Westcap Mgt. Ltd. Golden invests capital from its 28,000 shareholders in small and medium-sized growth companies.