The M&A landscape continued to see heightened activity in the second quarter of 2021, and the result was another strong quarter of both organic and strategic growth across Constellation.

Constellation announced a 35% increase in revenue to $1.249B compared to $922M in Q2 2020, with a 14% increase of organic growth. The first six months of 2021 saw total revenues of $2.425B—an increase of 29%, or $550M compared to the same period in 2020.

Overall growth for both periods compared to the same periods in 2020 were primarily driven by acquisitions completed for a total cash consideration of $328M, with another $146M deployed after the end of the quarter on June 30th, 2021.

Entering the Multi-Hundred-Million-Dollar M&A Arena

Acquisitions are central to our growth strategy and we have done exceptionally well investing in small-to-midsize VMS companies, completing over 500 acquisitions of market-leading, mission-critical businesses that we have helped grow in their respective markets and expand to new ones.

Following the purchase of B.V. (“Topicus”) and subsequent spinout with Total Specific Solutions (“TSS”) into a separate public company, Constellation announced changes to how we deploy capital that allow us to pursue more large, multi-hundred-million-dollar deals than we have conventionally been a part of.

With the goal of acquiring one or two large companies per year, a dedicated team in place, and considerations to lower hurdle rates on these acquisitions, we are excited to expand our M&A presence and be competitive purchasers in more large transactions.

To read Mark Leonard’s full letter to shareholders, click here.

In the news:

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

As we continue to invest in VMS markets as we traditionally have, we look forward to working with banks and brokers in new ways.

I invite you to reach out directly to discuss anything I’ve mentioned above or explore opportunities together.



Scott Smith
President and Managing Partner
Constellation Real Estate Group