Last month, Constellation Software Inc. announced strong third quarter results despite dynamic shifts and challenges in markets worldwide. As global markets continue to recover and rally on the heels of the pandemic, Constellation’s success can be attributed to its business units’ and employees’ commitment to support each other, their customers, respective industries, and considerable ability to adapt to remote processes and integrations.
Constellation announced growth in total revenue to $1,003 million for the quarter ending on September 30th, 2020 – an increase of 15% over the same quarter in 2019. Overall growth was driven primarily through acquisitions completed for an aggregate cash consideration of $122 million, while organic growth was negative 1% for the quarter.
Constellation continued to acquire new businesses with $148M of acquisitions completed in the quarter and another $47M completed or committed to acquire. Cash flows from operations increased to $831 million in the nine months of the year and the company ended the quarter with $534M in cash on the balance sheet – an increase of $57 million for the same period in 2019, providing substantial cash flow to consider additional acquisitions as we close out the year and head into 2021.
The Constellation Real Estate Group contributed to the figures described above, acquiring Paradym Marketing, an industry leader in virtual marketing software – a strategic investment as the world continues to adopt digital and virtual technologies.
To read Constellation’s full Second Quarter Earnings Report, click here.
Notable Q3 Acquisitions:
- Perseus Operating Group of Constellation Software Inc. Acquires Catalyst Computer Systems
- Paradym Joins Constellation1, Expanding its Front Office Suite of Solutions with Additional Marketing Offerings
In the news:
- Market Leader and EXIT Realty Corp. Intl. Extend Partnership to Provide EXIT Promo Shop, Market Leader Teams, Business Suite and Leads Products
- VirPack and Mortgage Builder Announce Integration to Streamline the Digital Mortgage Process
- Constellation1 Provides Data Services to Altisource to Further Support Mortgage and Real Estate Marketplaces
- Constellation Real Estate Group’s TorchX Opens New Home Office, Fueled by Accelerated Growth and Strong Talent Pool
As 2020 draws to a much anticipated close, we continue to see opportunities to invest into 2021.
I invite you to connect. If you’d like to discuss any of the above or learn more about Constellation Software, please don’t hesitate to reach out.
Vice President, Mergers & Acquisitions
Constellation Real Estate Group