Constellation Software

Last updated
Constellation Software Inc.
Company type Public
Industry IT services
Founded1995;29 years ago (1995)
FoundersMark Leonard
Headquarters,
Area served
Worldwide
Key people
  • Mark Leonard (President and Chairman)
  • Jamal Baksh (Chief Financial Officer)
  • Mark Miller (Chief Operating Officer)
ServicesCustom Computer Programming Services
RevenueIncrease2.svg US$8.407 billion [1]  (2023)
Decrease2.svg US$62 millions [1]  (2023)
Total assets Increase2.svg US$10.899 billion [1]  (2023)
Total equity Increase2.svg US$1.961 billion [1]  (2023)
Number of employees
56,000 [2]
Website www.csisoftware.com

Constellation Software is a Canadian diversified software company. It is based in Toronto, Canada, is listed on the Toronto Stock Exchange, and is a constituent of the S&P/TSX 60.

Contents

The company was founded by Mark Leonard, a former venture capitalist, in 1995. [3] It went public in 2006, [4] and now has over 56,000 employees [2] spread over six operating segments.

Business

The company's business strategy is to acquire software companies, and then hold them for the long term. [4] It has acquired over 500 businesses since being founded. [4] It focuses on vertical market software companies (i.e. those that create software for a particular industry or market, as opposed to creating software usable for a wide variety of markets). [5] Most of its acquisitions are relatively small (for less than $5 million), [5] although the company has indicated that it may pursue larger acquisitions in the future. [4] For instance, Constellation acquired Acceo Solutions for $250 million in January 2018, its then second-largest acquisition. [6] In March 2022, Constellation Software acquired Allscripts’ hospital business unit for $700m. As per the agreement, Allscripts will receive a fixed amount of $670m plus $30M as a performance bonus at the closing of the deal. [7] Although the company has experienced great success with this strategy in the past (its stock has increased 30 times since its IPO in 2006), it has experienced more competition in acquiring companies in recent years, [4] especially from private equity and hedge funds. As of 2016, 67% of revenue was from customers in the public sector, while the other 33% was from customers in the private sector. [8] 12% of revenue was from Canada, 52% from the US, 30% from Europe, and 5% from the rest of the world. [8]

Operating segments

Constellation Software has six operating segments: [9]

Controversy

The founder and chairman of Constellation Software, Mark Leonard, has long maintained a low profile, declining media interviews and making few public appearances. [5]

In 2016, the founder of Innoprise Software sued Harris Computer Systems for giving away its software for free, thus reducing the value of a revenue-sharing agreement. [13] [4]

In mid-2018, the company cancelled its quarterly earnings calls, a highly unusual step for a public company. [6] Analysts suggest the company took this step because it was worried about leaking information about potential acquisitions to its competitors.

Management team

As of May 2024, the management team [14] is composed of

Related Research Articles

<span class="mw-page-title-main">Ryder</span> American transportation company

Ryder System, Inc. is an American transportation and logistics company, specializing in truck rental and leasing, fleet management, supply chain management, and transportation management. It also offers full-service leasing, rental and maintenance, used vehicle sales, transportation management, professional drivers, e-commerce fulfillment, and last-mile delivery services. The company is headquartered in Coral Gables, Florida, and operates in the United States and United Kingdom.

<span class="mw-page-title-main">Emerson Electric</span> American multinational corporation

Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company delivers a range of engineering services, manufactures industrial automation equipment, climate control systems, and precision measurement instruments, and provides software engineering solutions for industrial, commercial, and consumer markets.

MKS, Inc is a subsidiary of PTC, Inc. It was previously a multinational independent software vendor that was acquired by Parametric Technology Corporation on May 31, 2011. MKS operated in the Application Lifecycle Management (ALM) and Systems Administration market segments.

SunGard was an American multinational company based in Wayne, Pennsylvania, which provided software and services to education, financial services, and public sector organizations. It was formed in 1983, as a spin-off of the computer services division of Sun Oil Company. The name of the company originally was an acronym which stood for Sun Guaranteed Access to Recovered Data, a reference to the disaster recovery business it helped pioneer. SunGard was ranked at 480th in the U.S. Fortune 500 list in the year 2012.

<span class="mw-page-title-main">HCLTech</span> Indian multinational technology company

HCL Technologies Limited is an Indian multinational information technology (IT) consulting company headquartered in Noida, Uttar Pradesh. Founded by Shiv Nadar, it was spun out in 1991 when HCL entered into the software services business. The company has offices in 59 countries and over 220,000 employees.

<span class="mw-page-title-main">Essendant</span> American office supply distributor

Essendant Inc., formerly known as United Stationers, is a national wholesale distributor of office supplies, with consolidated net sales of $5.3 billion. Essendant serves 30,000 reseller customers and stocks over 160,000 items, including traditional office products, office furniture, janitorial and break room supplies, industrial supplies, and technology products. Essendant is headquartered in Deerfield, Illinois and also has operations in Dubai, United Arab Emirates (UAE).

<span class="mw-page-title-main">Reynolds and Reynolds</span> Private corporation based in Ohio

The Reynolds and Reynolds Company is a private corporation based in Dayton, Ohio. Its primary business is providing business forms, management software and professional services to car dealerships. Its software is used to manage sales logistics at dealerships. It also produces forms used in medicine and insurance.

IQVIA, formerly Quintiles and IMS Health, Inc., is an American Fortune 500 and S&P 500 multinational company serving the combined industries of health information technology and clinical research. IQVIA is a provider of biopharmaceutical development, professional consulting and commercial outsourcing services, focused primarily on Phase I-IV clinical trials and associated laboratory and analytical services, including investment strategy and management consulting services. It has a network of more than 88,000 employees in more than 100 countries and a market capitalization of US$49 billion as of August 2021. As of 2023, IQVIA was reported to be one of the world's largest contract research organizations (CRO).

<span class="mw-page-title-main">Finastra</span> Software companies of the United Kingdom

Finastra is a financial software company headquartered in London, England. The company sells to the retail banking, transaction banking, lending, and treasury capital markets. Finastra was formed in 2017 by the combination of London-based Misys, a provider of financial operations software, and global payments and lending technology provider D+H. At the time of its formation, Finastra was considered the third-largest financial services technology company in the world.

Omniture is an online marketing and web analytics business unit in Orem, Utah. It was acquired by Adobe Systems in 2009. Until 2011, Omniture operated as a business unit within Adobe as the "Omniture Business Unit", but as of 2012 Adobe began retiring the Omniture name as former Omniture products were integrated into the Adobe Marketing Cloud.

Micro Focus International plc was a British multinational software and information technology business based in Newbury, Berkshire, England. The firm provided software and consultancy. The company was listed on the London Stock Exchange and the New York Stock Exchange until it was acquired by the Canadian software firm OpenText in January 2023.

Trapeze Software Inc. is a Canadian multinational software company, specializing in intelligent transportation systems and transit scheduling software. Headquartered in Mississauga, Ontario, Trapeze is a subsidiary of Constellation Software.

<span class="mw-page-title-main">Verisk Analytics</span> American data analytics and risk assessment firm

Verisk Analytics, Inc. is an American multinational data analytics and risk assessment firm based in Jersey City, New Jersey, with customers in insurance, natural resources, financial services, government, and risk management sectors. The company uses proprietary data sets and industry expertise to provide predictive analytics and decision support consultations in areas including fraud prevention, actuarial science, insurance coverage, fire protection, catastrophe and weather risk, and data management.

Veradigm Inc. is a publicly traded American company that provides physician practices, hospitals, and other healthcare providers with practice management and electronic health record (EHR) technology. Veradigm also provides products for patient engagement and care coordination, as well as financial and analytics technology. The company has more than 180,000 physician users and has products in 2,700 hospitals and 13,000 extended care organizations. The company formally changed its name from Allscripts to Veradigm in January 2023.

<span class="mw-page-title-main">Patterson Companies</span> Medical multinational company

Patterson Companies, Inc. provides products, technologies, services and business solutions to oral and animal health customers in North America and the U.K. The company was established in 1877 as a dental company. It entered the animal health industry in 2001 with its acquisition of Webster Veterinary and expanded with its 2015 acquisition of Animal Health International, Inc.

Moody's, previously known as Moody's Analytics, is a subsidiary of Moody's Corporation established in 2007 to focus on non-rating activities, separate from Moody's Investors Service. It provides economic research regarding risk, performance and financial modeling, as well as consulting, training and software services. Moody's is composed of divisions such as Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and Canadian Securities Institute Global Education Inc.

Netsmart Technologies is an American company that develops and sells health information technology, including for electronic health records and health information exchanges, for organizations and entities in the behavioral health, human services, and post-acute care markets.

Veritas Capital Fund Management, L.L.C. is a New York–based private-equity firm founded in 1992 that invests in companies providing critical products and services, primarily technology-enabled products and services, to government and commercial customers worldwide. The firm's first fund closed in 1998. They closed an eighth flagship fund in 2022; in all, Veritas has approximately $45 billion of assets under management. Veritas is led by Ramzi Musallam, the firm's Chief Executive Officer and Managing Partner.

<span class="mw-page-title-main">Barak Eilam</span> Israeli computer programmer

Barak Eilam is an American–Israeli executive. He is the chief executive officer of NICE (NASDAQ:NICE) He became the CEO in 2014, after spending over 15 years with the company. Eilam led the transformation and strategy of evolving NICE into a cloud enterprise software company. This transition was achieved through organic innovations as well as acquisitions of multiple companies of businesses, as well as the divestiture of a number of subsidiaries to focus the company on cloud and analytics. These strategic moves drove the company's accelerated growth in the last 7 years. On May 16 2024, it was announced that Eilam would resign from NICE by 31 December.

<span class="mw-page-title-main">EW Group</span> German company in the agribusiness

The EW Group GmbH, headquartered in Visbek, Germany, is a global family owned holding, which integrates more than 300 active subsidiaries. The company is operating primarily at the beginning of the value chain, including animal and plant breeding, animal health and diagnostics. The management board comprises the founder, Erich Wesjohann, his sons, Dirk and Jan Wesjohann, as well as Albert Cordts.

References

  1. 1 2 3 4 "Constellation Software Inc Q4 2023 Financial Statements" (PDF). Retrieved December 14, 2024.
  2. 1 2 "Constellation Software Inc Annual Information Form - March 29, 2024" (PDF). Retrieved December 14, 2024.
  3. "» Management Team Constellation Software, Inc". www.csisoftware.com. Retrieved 2017-11-29.
  4. 1 2 3 4 5 6 De Vynck, Gerrit. "Has Constellation Software's run of rapid growth come to an end?". The Globe and Mail. Retrieved 2017-11-30.
  5. 1 2 3 4 Chidley, Joe (April 24, 2014). "Constellation Software's elusive CEO". The Globe and Mail.
  6. 1 2 "Constellation Software keeps investors guessing by eschewing conference call". BNN. 2018-07-25. Retrieved 2018-08-14.
  7. "» Harris to acquire Allscripts' hospital business unit for $700m". 3 March 2022.
  8. 1 2 "Constellation Software Inc. Q4 and Year End 2016 Results". Constellation Software. Archived from the original on 2017-12-03. Retrieved 2017-11-30.
  9. "» Our Companies Constellation Software, Inc". www.csisoftware.com. Retrieved 2017-11-30.
  10. "Agri-Food". www.volarisgroup.com. Archived from the original on 2017-12-03. Retrieved 2017-11-30.
  11. "Our Businesses". www.harriscomputer.com. Archived from the original on 2017-11-29. Retrieved 2017-11-30.
  12. "Jonas Software - Our Companies". www.jonassoftware.com. Retrieved 2017-11-30.
  13. "Innoprise Software's Lawsuit Against Harris Computer Systems (CSU) to Proceed to Jury Trial on June 13, 2016". MarketWired. April 26, 2016.
  14. "Management Team". csisoftware.com. Archived from the original on 2024-05-28. Retrieved 2024-05-28.