Liberty Posted February 24, 2020 Author Share Posted February 24, 2020 ACCEO acquisition: https://acceo.com/en/news/acceo-solutions-inc-a-wholly-owned-subsidiary-of-n-harris-computer-corporation-acquires-solution-icc-technologies/ ACCEO Solutions Inc. (“ACCEO”), a wholly-owned subsidiary of N. Harris Computer Corporation (“Harris”), announces that it has acquired Informatique Côté Coulombe Inc. (“ICC Technologies”), a developer of high-end enterprise resource planning software offerings for the construction, distribution, retail, and printing sectors. By joining the ACCEO family, ICC Technologies’ customers will be added to a base of more than 40,000 ACCEO customers, and more than 60,000 North American Harris customers. This acquisition allows ACCEO to consolidate its position as a leader in management solutions in Quebec and Canada. The addition of ICC Technologies’ solutions to ACCEO’s portfolio expands the range of solutions offered and strengthens its position, particularly for the hardware and building materials industry. Pearnick: "110+ employees, 800+ clients" Link to comment Share on other sites More sharing options...
gary17 Posted February 24, 2020 Share Posted February 24, 2020 given how expensive e this stock is now. would people sell this given the coronavirus market sell off and buy later or just hold and buy some more i have gotten lucky to have held a few winners. but that’s a problem cuz. now i don’t know what to do lol! Link to comment Share on other sites More sharing options...
Liberty Posted February 24, 2020 Author Share Posted February 24, 2020 Jonas acquisition: https://www.jonassoftware.com/About_Us/Latest_News/Jonas_Software_Acquires_QuickQube Jonas Software (“Jonas”) is pleased to announce the acquisition of the intellectual property of QuickQube from Solutions On The Go, LLC.. “We are very excited to continue to invest in the moving and storage industry as this is our third acquisition in the past few years,” explains Peyton Moore, President at EWS Group “Solutions On The Go has been a market leader and successful software company in the moving and storage industry. We are pleased to be able to acquire the QuickQube product, which will complement our existing offerings and drive even greater value to our collective office and industrial moving clients. We are pleased to welcome them to the Jonas family.” h/t @pearnick Link to comment Share on other sites More sharing options...
sane Posted February 26, 2020 Share Posted February 26, 2020 2019 acquisitions were at 2.1x P/S compared to 3.0x in 2018. Seems odd, no? Source: p.52-54 Shareholder report 4. Business acquisitions (a) During the year ended December 31, 2019, the Company completed a number of acquisitions for aggregate cash consideration of $549 plus cash holdbacks of $102 and contingent consideration with an estimated fair value of $37 resulting in total consideration of $688. b) The 2019 business acquisitions contributed revenue and net income of $267 and $3 during the year ended December 31, 2019. If these acquisitions had occurred on January 1, 2019, the Company estimates that consolidated revenue would have been $3,816 and consolidated net income for the year ended December 31, 2019 would have been $314 as compared to the amounts reported in the statement of income for the same period. In determining these amounts, the Company has assumed that the fair values of the net assets acquired that were estimated and accounted for on the dates of acquisition would have been the same as if the acquisitions had occurred on January 1, 2019. The net income from acquisitions includes the associated amortization of acquired intangible assets recognized as if the acquisitions had occurred on January 1, 2019. Link to comment Share on other sites More sharing options...
Liberty Posted February 26, 2020 Author Share Posted February 26, 2020 2019 acquisitions were at 2.1x P/S compared to 3.0x in 2018. Seems odd, no? Source: p.52-54 Shareholder report 4. Business acquisitions (a) During the year ended December 31, 2019, the Company completed a number of acquisitions for aggregate cash consideration of $549 plus cash holdbacks of $102 and contingent consideration with an estimated fair value of $37 resulting in total consideration of $688. b) The 2019 business acquisitions contributed revenue and net income of $267 and $3 during the year ended December 31, 2019. If these acquisitions had occurred on January 1, 2019, the Company estimates that consolidated revenue would have been $3,816 and consolidated net income for the year ended December 31, 2019 would have been $314 as compared to the amounts reported in the statement of income for the same period. In determining these amounts, the Company has assumed that the fair values of the net assets acquired that were estimated and accounted for on the dates of acquisition would have been the same as if the acquisitions had occurred on January 1, 2019. The net income from acquisitions includes the associated amortization of acquired intangible assets recognized as if the acquisitions had occurred on January 1, 2019. Seems to me like that's in good part a factor of size. In 2018 they had Acceo, which was probably at a higher multiple (but they used some leverage on it). 2019 they had no large transactions, so more small ones that tend to be at lower multiples. Link to comment Share on other sites More sharing options...
sane Posted February 27, 2020 Share Posted February 27, 2020 Makes sense, thanks Liberty. Link to comment Share on other sites More sharing options...
Liberty Posted February 27, 2020 Author Share Posted February 27, 2020 Three new acquisitions: Jonas: https://www.jonassoftware.com/About_Us/Latest_News/Jonas_Software_Acquires_Club_Caddie_Inc Club Caddie was founded by enterprising Golf Course operators as an answer to their needs to manage all of the challenges of running a profitable golf operations in today’s market. Volaris: https://www.volarisgroup.com/news/article/volaris-group-acquires-MUSAC acquisition of MUSAC Limited. (“MUSAC”), a leading provider of school and library management solutions for New Zealand schools. MUSAC represents Volaris’ seventh acquisition in the Education vertical and its fifth education software acquisition in the Australasia region. Perseus: https://www.prweb.com/releases/constellation_web_solutions_acquires_enterprise_business_from_web_com/prweb16942703.htm Enterprise Online, formerly known as Web.com for Enterprise, provides customized digital marketing solutions that scale to solve the unique challenges of franchised, multi-location and networked businesses. Enterprise Online has worked with over 10,000 franchise locations and 150 national brands, empowering them with the online marketing tools they need to grow. Enterprise Online provides market leading websites, digital marketing services including search engine marketing, media buying and spend-optimization, analytics, and digital marketing platforms tailor made for franchise, multi-location and large enterprise clients. h/t @pearnick Link to comment Share on other sites More sharing options...
Liberty Posted March 1, 2020 Author Share Posted March 1, 2020 AGM is official for May 8: https://www.globenewswire.com/news-release/2020/02/28/1992984/0/en/Constellation-Software-Inc-Announces-Annual-General-Meeting.html Update: New acquisition at Vela: https://www.quadient.com/news/Quadient-announces-the-sale-of-ProShip Quadient, formerly Neopost[1], a leader in helping businesses create meaningful customer connections through digital and physical channels, today announced the sale of its subsidiary, ProShip, a global provider of automated multi-carrier shipping software, to FOG Software Group, a division of Constellation Software, Inc, a company listed in Toronto (TSX: CSU). "a leader in enterprise parcel shipping solutions" Selling price: USD 15 million "ProShip has about 100 employees" h/t @pearnick Link to comment Share on other sites More sharing options...
thefatbaboon Posted March 3, 2020 Share Posted March 3, 2020 given how expensive e this stock is now. would people sell this given the coronavirus market sell off and buy later or just hold and buy some more i have gotten lucky to have held a few winners. but that’s a problem cuz. now i don’t know what to do lol! I think gary has a valid question here. Simplistically: Shares outstanding: 21.2m Share price: CAD1373 , USD1028 Market Cap: USD 21.8bn FCF 2019: USD 590m Trailing FCF yield: 2.7% 2019 Maintenance Organic Public g: 2% 2019 Maintenance Organic Private g: 1% 2019 Wgtd Avg Org Growth: 1.6% Assume that that is fair, that it is reasonable to expect a valuation at 2.7%. Assume also an improved organic growth of 2%. And that all FCF is used for acquisitions. How much return does a shareholder want from this business? I would say minimum is 10%, no? So that means the market cap has to add $2.18bn in value this year. and more each year going forward. Existing business: $21.8bn is worth 2% more next year through organic growth: this adds +$430m of market cap value. Still have to find $1.75bn of market cap...and the only way to do that is acquisition. Last year they acquired $688m of new businesses (including deferred payments). Is it reasonable to expect that what they buy is immediately and predictably worth 2.5 times their cost, year after year? I would hate to bet against this business and feel horrible closing a successful and enjoyable long but I think the valuation here requires a real leap of faith. A combination of the following three possibilities would help: 1.) Organic growth (of the key maintenance lines) picks back up to msd. 2.) The acquisition funnel that produced $688m of acquisitions ( about 10% more than in 2018). Ramps up faster without a diminution in quality. 3.) They find a large, one-off value enhancing acquisition. Link to comment Share on other sites More sharing options...
Liberty Posted March 3, 2020 Author Share Posted March 3, 2020 New ones in Autralia by Vela: https://velasoftwaregroup.com/vela-software-acquires-foresiight/ Vela Software Group announced today that it has acquired the shares of Foresiight Software Pty Ltd (“Foresiight”), trading through its subsidiary Vela Australia. Established in 1981, Foresiight Pty Ltd is an Australian software company that integrates point of sale, accounting, stock control and mobile commerce applications with their solutions ProfiitPlus, Alchemii and Liinc. Foresiight focus on a number of different industries such as Building & Hardware, Pharmacy, Tools & Industrial and Automotive. Also: https://interica.com/petrosys-announces-acquisition-of-interica/ h/t @pearnick Link to comment Share on other sites More sharing options...
gary17 Posted March 3, 2020 Share Posted March 3, 2020 given how expensive e this stock is now. would people sell this given the coronavirus market sell off and buy later or just hold and buy some more i have gotten lucky to have held a few winners. but that’s a problem cuz. now i don’t know what to do lol! I think gary has a valid question here. Simplistically: Shares outstanding: 21.2m Share price: CAD1373 , USD1028 Market Cap: USD 21.8bn FCF 2019: USD 590m Trailing FCF yield: 2.7% 2019 Maintenance Organic Public g: 2% 2019 Maintenance Organic Private g: 1% 2019 Wgtd Avg Org Growth: 1.6% Assume that that is fair, that it is reasonable to expect a valuation at 2.7%. Assume also an improved organic growth of 2%. And that all FCF is used for acquisitions. How much return does a shareholder want from this business? I would say minimum is 10%, no? So that means the market cap has to add $2.18bn in value this year. and more each year going forward. Existing business: $21.8bn is worth 2% more next year through organic growth: this adds +$430m of market cap value. Still have to find $1.75bn of market cap...and the only way to do that is acquisition. Last year they acquired $688m of new businesses (including deferred payments). Is it reasonable to expect that what they buy is immediately and predictably worth 2.5 times their cost, year after year? I would hate to bet against this business and feel horrible closing a successful and enjoyable long but I think the valuation here requires a real leap of faith. A combination of the following three possibilities would help: 1.) Organic growth (of the key maintenance lines) picks back up to msd. 2.) The acquisition funnel that produced $688m of acquisitions ( about 10% more than in 2018). Ramps up faster without a diminution in quality. 3.) They find a large, one-off value enhancing acquisition. Thanks! well, thanks for the Fed, the risk free rate is now lower. you can buy 10 year us bonds for 1% yield.... P/E of 100 for an asset that has no ability to increase earnings for 10 years. CSU at present P/E seems like a better bet! Link to comment Share on other sites More sharing options...
Liberty Posted March 19, 2020 Author Share Posted March 19, 2020 Volaris acquisition: https://www.volarisgroup.com/news/article/volaris-group-acquires-Collab "mission critical multi-media Contact Center solutions" 500+ customers 35,000+ call center agents on the system 104 employees (Linkedin) "“We have been talking with Volaris regularly since 2017" h/t @pearnick Link to comment Share on other sites More sharing options...
Liberty Posted March 27, 2020 Author Share Posted March 27, 2020 AGM on May 8 to be streamed: https://www.globenewswire.com/news-release/2020/03/26/2007332/0/en/Constellation-Software-Inc-Announces-Change-to-Annual-General-Meeting-Format.html Link to comment Share on other sites More sharing options...
chrispy Posted March 27, 2020 Share Posted March 27, 2020 I can now attend! Thanks for the info Link to comment Share on other sites More sharing options...
Cox022 Posted March 27, 2020 Share Posted March 27, 2020 Anyone have an informed point of view to share about how the business does in a situation like this? I don't have the source at my fingertips (it's probably in a letter), but I recall the company saying that business owners were not eager to sell their businesses in the 08/09 downturn. I don't view this as a cause for concern, that's just what I have to contribute to the conversation. Thanks peeps. Link to comment Share on other sites More sharing options...
Liberty Posted March 27, 2020 Author Share Posted March 27, 2020 Anyone have an informed point of view to share about how the business does in a situation like this? I don't have the source at my fingertips (it's probably in a letter), but I recall the company saying that business owners were not eager to sell their businesses in the 08/09 downturn. I don't view this as a cause for concern, that's just what I have to contribute to the conversation. Thanks peeps. I don’t think they’ll necessarily get a ton more very small ones, but they might get some big distressed ones. Carve outs from bigger companies, f.ex. And valuations generally might get better, weaker competitors might suffer more, letting them gain or buy them out eventually. Link to comment Share on other sites More sharing options...
Liberty Posted April 3, 2020 Author Share Posted April 3, 2020 https://www.globenewswire.com/news-release/2020/04/02/2010411/0/en/Constellation-Software-Announces-a-Change-to-its-Board-of-Directors.html Link to comment Share on other sites More sharing options...
Liberty Posted April 3, 2020 Author Share Posted April 3, 2020 Acquisition by the Real Estate group: https://www.prweb.com/releases/constellation1_acquires_real_estate_tech_pioneer_virtual_properties/prweb16915381.htm Link to comment Share on other sites More sharing options...
Liberty Posted April 9, 2020 Author Share Posted April 9, 2020 Three new acquisitions: https://www.contronics.co.uk/news-articles/jonas-software-acquisition-of-contronics-ltd/ https://www.totalspecificsolutions.com/about-us/transaction-updates?tid=54 https://blog.kuriertecnologia.com.br/vela-software-gigante-do-grupo-canadense-constellation-adquire-kurier/ Via @pearnick: Link to comment Share on other sites More sharing options...
Liberty Posted April 17, 2020 Author Share Posted April 17, 2020 New one at Vela: https://optitex.com/optitex-acquired-by-constellation-software/ "Fashion design software developer" Optitex was acquired by EFI in 2016 for a "maximum purchase price of $52.8M". EFI was then acquired by PE firm Siris Capital for $1.7B in July 2019. 144 employees h/t @pearnick Link to comment Share on other sites More sharing options...
smartone Posted April 22, 2020 Share Posted April 22, 2020 Thanks Liberty for always keeping us updated on CSU Link to comment Share on other sites More sharing options...
Pauly Posted April 22, 2020 Share Posted April 22, 2020 Just going by CSU's stock price you wouldn't know that the world is in chaos. I thought I might get a chance to pick this up at a discount but it refuses to go down. Is anyone buying or selling this here? Link to comment Share on other sites More sharing options...
chrispy Posted April 22, 2020 Share Posted April 22, 2020 Just holding tight. Link to comment Share on other sites More sharing options...
Liberty Posted April 27, 2020 Author Share Posted April 27, 2020 New acquisition at Vela: https://www.fogsoftwaregroup.com/fog-software-group-acquires-efi-fiery-designpro-generation-digital-now-rebranded-aquario-design/ Aquario Design will operate as an independent business within FOG’s Apparel and Textile Technologies portfolio. This acquisition now brings three best-in-class textile and fashion technologies—NedGraphics, Optitex, and Aquario Design—under the same parent company. Here they will have the opportunity to work collaboratively to improve the customer experience while offering a range of design solutions that align with market needs. Aquario Design’s software enables fashion designers to quickly and easily create, visualize, and produce production-ready textiles from designs created in Adobe Creative Cloud programs. As part of the FOG Software Group, Aquario will focus on expanding its core product functionality while maintaining the exceptional customer support that has enabled its growth to date. “We earned our position in the industry as one of the leading textile and fashion solutions by leveraging our experience as designers, and by working closely with our customers,” said Matt Forman, President of Aquario Design. “This acquisition only enhances our ability to serve designers all over the world.” h/t @pearnick Link to comment Share on other sites More sharing options...
Liberty Posted May 4, 2020 Author Share Posted May 4, 2020 New acquisition by TSS: http://ir.stratec.com/websites/stratec/English/2100/news-detail.html?newsID=1956447 TSS acquired STRATEC's Data Solutions business unit (Germany) "STRATEC Data Solutions is one of the world’s leading software development companies for laboratory data management and analyzer communications." 5,000 worldwide installations h/t @pearnick Link to comment Share on other sites More sharing options...
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