Constellation Q1 2021 Earnings, Acquisitions & Outlook

Activity across the technology investment landscape continued to intensify in Q1, driven by excess capital, COVID-fueled digital disruption and a strong market in many sectors. From IPOs and SPAC transactions to divestures to PE and strategic acquirers, the result was heightened activity and an impressive first quarter of 2021.

Constellation Software Inc. announced strong results in Q1, with a 23% increase in revenue to $1.176B compared to $953M in Q1 2020. Overall growth was primarily driven by acquisitions completed for a total cash consideration of $448M, with another $198M deployed following the quarter’s end on March 31st.

Cash flows from operations increased 37% to $495M, up $135M from Q1 2020, providing a healthy cash flow to consider additional acquisitions heading into Q2 and the rest of 2021.

These results continue to demonstrate the strength of our companies, our ability to leverage operations across business units, and our relentless commitment to growing market share. We continue to invest in mission-critical vertical market software and remain committed to being the leading technology provider in the industries we serve.

The Constellation Real Estate Group contributed to these results with the acquisition of Top Producer in March, strengthening our position as the industry’s largest technology provider in the real estate technology market. We are pleased with the portfolio of real estate and mortgage brands we have assembled, and the current activity level makes us confident we will add to this portfolio more in 2021.

Notable Q1 acquisitions:

• Constellation Real Estate Group Acquires Industry Pioneer Top Producer from Move, Inc.
• Volaris Group, a Constellation Software Company, Completes Acquisition of SSP Limited
• R.O. Writer joins Perseus, an Operating Group of Constellation Software Inc.

In the news:

• RISMedia Provides a Closer Look at the Top Producer Acquisition from Move, Inc.
• SmartZip Brings Real Estate Data to Blockchain with Chainlink
• Market Leader has been reborn under Constellation Real Estate Group, and we’re better for it

To read Constellation’s full first quarter earnings report, click here.

We’ll continue to share news about our acquisitions and growth, and look forward to connecting. Feel free to reach out directly if you want to discuss any of the above or talk to us about opportunities together.

 

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