CSU - Constellation Software

[chrispy]

I am finishing Greenblatt's book and this spin off has many of the qualities he discusses. Being on the TSVX should add extra fuel to the forced selling

 

I need to see how it will be best for me to purchase on TSVX

[Liberty]

It may not dump at all, though, because everybody's read greenblatt and lots of sophisticated investors will be ready to pounce at any sign of weakness... reflexivity is annoying sometimes ¯\_(ツ)_/¯

[coc]

Agreed. I'm deeply skeptical of the "ignored spinoff" thing at this point. Greenblatt wrote the most popular book in the history of hedge funds outside of Ben Graham - it's being watched like a hawk. CSU is also being watched like a hawk by every growth stock fund.

[Liberty]

New acquisition at Volaris:

 

https://www.wifispark.com/blog/wifi-spark-sale-to-volaris-group

 

WiFi SPARK is the leading specialist in public-access WiFi solutions for large public venues in the UK market. It specialises in WiFi for the Healthcare, Retail and Transportation sectors with over half of the NHS Acute Trusts choosing WiFi SPARK for their WiFi and patient entertainment requirements.

 

Matt O’Donovan, founder and CEO of WiFi SPARK commented, “We have a portfolio of customers to whom we are providing exceptional WiFi, analytics and entertainment services delighting millions of users each day. I chose Volaris for this acquisition because they have the experience to help us to accelerate our growth, provide additional resources and opportunities to both strengthen and expand our offering and market presence. I particularly like their unique ‘buy and hold forever’ approach to acquisition and we look forward to exciting times ahead.”

 

 

WiFi SPARK will continue to operate autonomously under the leadership of Matt O’Donovan and the WiFi SPARK Management team.

 

"Market share: "over half of the NHS Acute Trusts choosing WiFi SPARK"

 

60 employees

Profitable, no debt"

 

h/t @pearnick

[Liberty]

Another one at Volaris, this time in Austria:

 

Volaris acquired MOTIONDATA VECTOR Group (Austria) from Denzel Group

 

"the leading provider of software products in the automotive import and trade sector."

 

Founded in 1984

1,800 installations in 10 countries

13,000+ users

40 brands

130 employees

 

h/t @pearnick

[FiveSigma]

Annual revenue of USD 15M per DnB - a sizeable one.

[Liberty]

Perseus acquisition in US:

 

https://www.constellationreg.com/paradym-joins-constellation1-expanding-its-front-office-suite-of-solutions-with-additional-marketing-offerings%e2%80%af/

 

Constellation1, a leading provider of technology for real estate brokerages, franchises, and MLSs across North America, announces the acquisition of the Paradym web and mobile SaaS marketing solutions for real estate professionals from TRF Systems Inc. 

 

"Founded in 1992

75 employees"

 

h/t @pearnick

[Liberty]

https://www.globenewswire.com/news-release/2020/10/20/2111016/0/en/Introducing-Modaxo-A-Global-Collective-of-Technology-Businesses-Singularly-Focused-on-People-Transportation.html

 

Today marks the official launch of Modaxo, a new, dedicated global organization bringing together businesses from across Volaris Group that collectively focus on advancing new technologies and innovations for People Transportation. Bill Delaney has been named Modaxo’s CEO.

 

With more than two dozen companies, representing 12 brands, Modaxo comprises 2,000 people, operating from 35 offices in 21 countries around the world. Today’s launch of Modaxo, brings these businesses together under a global banner, with a singular focus and passion to provide the software and technologies that move the world’s people.

 

The businesses that make up Modaxo retain their existing brands and continue to service customers in their local markets, but become part of a larger organization with Modaxo, sharing industry knowledge and market understandings to help drive new product innovation and services.

 

Businesses under the Modaxo banner include Binary System, Cittati, Empresa1, Holmedal, Imperial, PLANit, Signature Rail, Systemtechnik, TransTrack Systems, Trapeze Group, and TripSpark.

 

https://modaxo.com/about-us/

[Liberty]

Details coming out on topicus spin:

 

https://www.csisoftware.com/docs/default-source/press-releases/press_release_re__conditional_dividend.pdf

[Liberty]

New acquisition at Vela in the US:

 

https://velasoftwaregroup.com/vela-software-acquires-elmtree-system/

 

ElmTree System offers a SaaS Business Management System for Construction Materials Engineering and Testing (CMET) and Geotechnical Engineering Firms, with an integrated workflow from proposal to final invoice. With more than 20 years of experience and a long history of innovation the solution is used widely in North America.

 

"Founded in 1997

8 employees"

 

Another one at Vela:

 

https://velasoftwaregroup.com/vela-acquires-searoc/

 

SeaRoc was formed in 2002 to provide industry leading Software as a Service Solutions to optimise safety and efficiency within large scale, hazardous operational, and construction environments.

 

SeaRoc’s SeaPlanner product has played a pivotal role in the development of 31 offshore wind projects, supporting the induction and certification management of over 24,000 personnel and 500 subcontractors.

 

"51 employees"

 

h/t @pearnick

[Liberty]

Volaris news:

 

https://www.globenewswire.com/news-release/2020/10/27/2115052/0/en/Volaris-Group-Introduces-Lumine-Group-to-Focus-on-Communications-Media-Business.html

 

Volaris Group (“Volaris”) today announced Lumine Group (“Lumine”) a new brand for its Communications & Media Portfolio. Lumine will build on Volaris’ success in the communications and media vertical.

 

“Lumine’s vision is to create a global ecosystem to help accelerate the growth and internationalization of communications and media software businesses,” says David Nyland, President of Lumine Group. “Businesses can leverage global resources including product innovation, customers and channels, support to enter new geographies, and a wealth of domain-specific best practices to scale efficiently.”

 

Since 2013, Lumine has built a global portfolio of complementary communications and media software businesses, completing 16 acquisitions with employees in over 30 countries. The portfolio encompasses a global network of customers, including tier-1 operators across the world.

 

“Lumine brings together a combination of innovative technology, great talent, and industry expertise under a single banner,” says Mark Miller, CEO of Volaris Group, and COO of Constellation Software. “The Lumine team will continue our legacy in this space, deploying Volaris best-practices and our winning buy-and-hold-forever formula.”

 

First Modaxo, now this.. Is this just some Spring cleaning to make the org a bit neater and strengthen the identity/culture of sub groups, or is this preparation for more spins or the creation of more holding co level groups at some point?

[Liberty]

Acquisition at Harris in the UK:

 

https://www.harriscomputer.com/en/news/?data-ipsquote-timestamp=1603771200&article=harris-acquires-uk-based-maternity-ward-software-provider-k2-medical-systems

 

acquires K2 Medical Systems Holdings Limited (K2 Medical Systems), a UK-based company providing specialized maternity ward software solutions to international markets.

 

This acquisition adds a significant international foundation to the Harris healthcare group and its expansion into the maternity sector, building upon its recent acquisition of Meridian Health Informatics in Australia. Harris Healthcare Group President, Jerry Canada comments: “K2 Medical Systems has expanded considerably since its inception over twenty years ago, and we look forward to entering a new stage of growth together.”

 

K2 Medical Systems offers support at each stage of the pregnancy journey with a suite of software solutions, including electronic health records, labour and delivery risk reduction, fetal and blood pressure monitoring systems, and interactive e-learning perinatal training programs. CEO and co-founder, Dr. Robert Keith, remarks: “K2 has always been passionate and dedicated to improving maternity care and Harris respected our vision and goals for the company. Through collaboration and sharing of best practices, we look forward to growing with Harris.”

 

"43 employees (2019)

No debt and profitable"

 

h/t @pearnick

[Liberty]

Volaris acquisition in the UK:

 

https://trapezegroup.co.uk/blog/taranto-systems-limited/

 

The Traffic Support software division of WSP has been acquired by Taranto Systems Limited (owned by Trapeze Group (UK) Limited, part of the Volaris Group).

 

The acquired division, now known as Taranto Systems Limited (“Taranto”), continues to operate independently, and joins a growing portfolio of Modaxo companies all focused on providing technology to move the world’s people.

 

Taranto operates within the United Kingdom, providing Road User Charging software for projects such as the London Congestion Charge and Dart Charge, and provides software to support the enforcement of UK local authority parking schemes.

 

"3000+ users

Used by over 60 central and local government in the UK"

 

h/t @pearnick

[Liberty]

Q3 is out:

 

https://www.csisoftware.com/docs/default-source/press-releases/q3-2020-shareholder-report.pdf

 

Q3 2020 Headlines:

 Revenue grew 15% (negative 1% organic growth, negative 3% after adjusting for changes in foreign

exchange rates) to $1,003 million compared to $870 million in Q3 2019.

 Net income increased 50% to $122 million ($5.76 on a diluted per share basis) from $82 million ($3.85 on

a diluted per share basis) in Q3 2019.

 A number of acquisitions were completed for aggregate cash consideration of $123 million (which includes

acquired cash). Deferred payments associated with these acquisitions have an estimated value of $25

million resulting in total consideration of $148 million.

 Cash flows from operations (“CFO”) were $234 million, an increase of 32%, or $57 million, compared to

$177 million for the comparable period in 2019.

 Free cash flow available to shareholders1

(“FCFA2S”) increased $47 million to $181 million compared to

$134 million for the same period in 2019.

 The Company determined that certain of its subsidiaries qualified for an estimated aggregate amount of

$12 million of grants from various government authorities, and recognized such amounts as a reduction to

expenses in the quarter.

 On May 20, 2020 the Company entered into a binding agreement with IJssel B.V. to purchase 100% of the

shares of Topicus.com B.V., a Netherlands-based diversified vertical market software provider. The

transaction is currently expected to close in 2020, subject to the satisfaction of certain closing conditions.

 Subsequent to September 30, 2020, the Company completed or entered into agreements to acquire a number

of businesses for aggregate cash consideration of $47 million (which includes acquired cash). Deferred

payments associated with these acquisitions have an estimated value of $19 million resulting in total

consideration of $66 million.

 

 

 

CSI return on capital and on equity for the past 10 years:

 

[Liberty]

Two new acquisitions:

 

TSS in Sweden:

 

Prek AB, "a leading software company in the Swedish real estate market, a regulated industry in Sweden."

 

Founded 40 years ago

"Family business"

38 employees

 

Jonas in Canada:

 

InfoMax Technologies

 

"a business process & workflow automation solution platform"

 

"an industry leader focused on the Canadian long-term care industry, (and) Canadian municipal government sector."

 

Founded 22 years ago

34 employees (Zoominfo)

 

h/t @pearnick

[tenyearsout]

If the Topicus spin off goes through, does anyone know the proportional value of Topicus vs the original CSU.  Ie how much of the original value of CSU is being lost.  Thanks. 

[Liberty]

Harris acquired Commerce Decisions from QinetiQ (U.K.)

 

"a market leader providing software and consultancy services to enable some of the largest and most complex procurements around the world."

 

Acquired by QinetiQ in 2008

£8.3m revenues

£10m purchase price

 

Founded in 2001

96% customer retention

240k individual users

Focus on complex procurement

 

Another one at Harris:

 

Harris acquired Genial Group (U.K.)

 

"delivers innovation in diagnostic and clinical process data management systems to a global roster of clients."

 

"a highly regarded genetic laboratory information management software provider"

 

35k+ software users licenses

35 employees

 

h/t @pearnick

[Liberty]

Strange:

 

https://www.globenewswire.com/news-release/2020/11/17/2128311/0/en/Constellation-Software-Inc-Provides-Update-in-Connection-with-Proposed-Topicus-com-Spin-Out-and-Previously-Declared-Conditional-Dividend.html

 

On October 20, 2020, Constellation announced that it had resolved to pay a special dividend of Topicus.com shares, conditional upon receipt by Constellation of such spin-out shares by November 17th. That condition will not be satisfied on or prior to November 17, 2020, and therefore the previously declared conditional dividend will not be paid. Constellation will continue to work toward a public listing of the shares of Topicus.com, and expects that the Topicus.com shares will be distributed to Constellation's shareholders at a later date. The new record date and payment date for such special dividend will be determined and announced at the appropriate time.

 

Guessing they'll just do it a bit later, but this feels like too little explanation of what is going on and what to expect...

[Liberty]

TSS acquisition in Germany:

 

easySoft: "a leading Education Management and Human Resource Development software"

 

"A significant majority of our users in the fields of education management and HR development have been with us for many years"

 

25 years

80 employees

1440 customers

 

Another one at Volaris in the US:

 

medaptus: "a healthcare technology company that removes administrative burden from hospital and group practice operations to enable higher efficiently throughput."

 

37 employees

20 years

 

Another one in Germany:

 

FOG Software acquired Xavannah GmbH

 

“a leading eBusiness provider for the digital trade, whose focus is on web-based software applications”

 

“With 14 employees, we have been working for approx. 70 companies in the handicraft industry since 2008.”

 

All h/t @pearnick

[Liberty]

Probably already posted earlier in this thread, but a good reminder of this 2018 podcast with Mark Miller:

 

[Liberty]

Two new ones, in France and Iceland:

 

TSS acquired the assets of Alcuin (France)

 

"delivers Training Management Systems (TMS) and Human Capital Management (HCM) solutions for higher education, training centers, and HR departments of private companies in France."

 

200 customers

66 employees

€6M revenues (2019)

 

--

 

New country: TSS acquired dk Hugbúnaður ehf (Iceland)

 

"a leading business solutions and accounting software provider for the SME market in Iceland"

 

"strong track record of consistent growth since it was founded in 1998"

 

7,000 clients

64 employees

 

h/t @pearnick

[Liberty]

New one in the US:

 

FOG acquired Vortx Inc (U.S.)

 

"creates and hosts eCommerce solutions in vertical markets with unique business requirements."

 

"Clients come to us with a single, specific need"

 

Founded in 1991

Over 10,000 users

18 employees

 

h/t @pearnick

[villainx]

Thank you!

 

[Liberty]

A bigger one:

 

https://www.csisoftware.com/category/press-releases/2020/12/11/volaris-group-a-constellation-software-company-enters-into-agreement-to-acquire-ssp-limited

 

Announced at CSI level (>$50M):

 

Volaris acquired SSP Limited (U.K.)

 

"the leading global supplier of technology systems and software for the insurance industry"

 

LinkedIn shows 1,141 employees

Zoominfo shows $298M revenues

 

Update: "Zoominfo seems to be wrong.

RBC: “assuming that SSP’s revenue has declined over the last 2 years at the same rate as FY18, we estimate that SSP likely generated $89MM annual revenue in FY20.”"

 

h/t @pearnick

[voyager]

More details on SSP attached  8)

 

A bigger one:

 

https://www.csisoftware.com/category/press-releases/2020/12/11/volaris-group-a-constellation-software-company-enters-into-agreement-to-acquire-ssp-limited

 

Announced at CSI level (>$50M):

 

Volaris acquired SSP Limited (U.K.)

 

"the leading global supplier of technology systems and software for the insurance industry"

 

LinkedIn shows 1,141 employees

Zoominfo shows $298M revenues

 

Update: "Zoominfo seems to be wrong.

RBC: “assuming that SSP’s revenue has declined over the last 2 years at the same rate as FY18, we estimate that SSP likely generated $89MM annual revenue in FY20.”"

 

h/t @pearnick

SSP_Limited_Financials.pdf