CSI 2020 Earnings & Acquisitions, 2021 Outlook

by | Mar 10, 2021 | Business Management, In the News, M&A | 0 comments

The world hit the ground running in 2021, following a year of unprecedented change, uncertainty, and progress. As we dive deeper into the new year, we look forward to continuing to deliver on our commitments to our companies, our customers, and our people.

2020: the great acceleration.

​​​​​​2020 brought massive and rapid change across industries globally—some flourished in the face of the pandemic, while others were met with unforeseen headwinds. The adoption of and investment in technology was accelerated across a number of verticals that have lagged historically, paving the way for notable success in industries that were primed for disruption.

Constellation Software Inc. (CSI) and the Constellation Real Estate Group (CREG), remain committed to investing in vertical market software, driving growth through strategic acquisitions, and providing scale and continuity to the customers we serve.

CSI announced 14% growth in total revenue for both Q4 and 2020 in its Q4 and Year-End earnings report this month; an increase of $135 million to $1,091 million in Q4 and $479 million to $3,969 million for 2020.

Despite logistical challenges ushered by the pandemic, Constellation continued to acquire new businesses in 2020 for aggregate cash considerations of $477 million for the year and $179 million for the fourth quarter. Cash flows from operations increased 55% for the year, ending at $1,186 million and providing a strong basis for acquisitions into 2021.

CREG contributed to the figures described above with the acquisitions of three businesses:

  1. Enspire for Enterprise in Q1, focused on franchise and multi-location digital marketing.
  2. Virtual Properties in Q2, focused on real estate broker solutions.
  3. Paradym in Q4, focused on virtual tours, marketing, and marketing automation.

We’ve just acquired Top Producer Software on March 1st, 2021, expanding our footprint in the real estate industry and paving the way for another exciting year—more info on this acquisition below.

Remote confidence continued to rise as the year progressed, culminating with the completed purchase of Netherlands-based diversified vertical market software provider, Topicus.com B.V., on January 5, 2021 and the spin out of Topicus and Constellation’s TSS division into a separate public company.

To read Constellation’s full Fourth Quarter and Year-End Earnings Report, click here.

2021: continued dedication, growth, and opportunity.​​​​​

Constellation remains uniquely positioned as long-term buyers in the acquisition space—a distinction that we carry proudly.

“CSI appreciates the nuances of the VMS sector. We allow tremendous autonomy to business unit managers. We are permanent and supportive stakeholders in the business that we control.” – Mark Leonard, CSI President

Just three months into 2021, the Constellation Real Estate Group has acquired industry pioneer Top Producer Software from Move, Inc., solidifying our foothold as the industry’s largest provider of technology solutions. As we continue to grow our portfolio, we look forward to creating new opportunities to invest in our customers and technology, and leverage those investments across our companies.

We believe technology is a differentiator and a long-term strategic advantage and, as a vertical market software provider, this remains central to our focus.

​​​Notable CREG acquisitions

In the news…

I invite you to reach out with questions you might have about Constellation or any of what I’ve discussed above.

I hope you are staying healthy and always look forward to connecting.

​​​​​

 

Scott Smith
President and Managing Partner
Constellation Real Estate Group
E: scotts@constellationreg.com

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