Constellation Software Inc. Announces Formation of a Venture Capital Fund and Management Changes
November 25 2021 - 5:05PM
Constellation Software Inc. (TSX:CSU) (“Constellation”) today
announced the creation of a two hundred-million-dollar venture
capital fund ("VMS Ventures“, or “the Fund”). The Fund will
provide financing for start-up and rapidly growing vertical market
software businesses, most of which will have been either incubated
or identified by a sponsoring Constellation business unit.
While Constellation regularly invests in dozens of small
initiatives and will continue to do so, VMS Ventures will invest in
larger initiatives and take a different approach:
- The Fund will only invest in
businesses (“Investees”) that have the potential to become
standalone business units within Constellation.
- The managers and employees of the
Fund's Investees will be significant shareholders in their
businesses.
- The Fund will not back start-ups
that have to rely upon a Constellation business unit for on-going
sales, marketing, customer support, development, etc.
- Many of the Investees' staff will be
hired from outside of Constellation.
- The Fund's employees will be
compensated based upon the Fund's results.
Investing only $200 million over a three-to-five-year period,
Constellation does not expect the Fund to add meaningfully to
Constellation’s organic revenue growth rate. The Fund's
objective is to develop and refine organic growth processes which
can eventually be rolled out more broadly by Constellation's
operating groups. Constellation does not anticipate that the
Fund will detract from Constellation's existing initiative programs
nor its acquisition momentum.
The Managing Partner of the Fund will be Daan Dijkhuizen. In
addition to managing the Fund, he will continue to be the CEO of
the Topicus Operating Group (“TOG”) within Topicus.com, but will
resign his role as CEO of Topicus.com. Robin van Poelje will take
on the role of the CEO Of Topicus.com in addition to his current
position as Chairman.
“Leading the Topicus Operating Group into Topicus.com Inc., and
the subsequent public listing of Topicus.com Inc., was an exciting
and fruitful journey. I will stay at Topicus.com Inc as a board
member. I look forward to continue building the future of TOG as
CEO and to leading the fund as managing partner focusing on
Constellation’s larger organic growth opportunities”, said Daan
Dijkhuizen.
Mark Leonard, President of Constellation stated: “Organic growth
will be a critically important part of CSI's enduring success. I’m
delighted that Daan will continue to lead TOG and will take on the
additional responsibility for the Fund. TOG has one of the best
track records of sustained organic growth at scale that I’ve seen
in the VMS industry. I’ll personally support the Fund and Daan as
he focuses on leading Constellation’s larger organic growth
efforts.”
Forward Looking Statements
Certain statements herein may be “forward looking”
statements that involve known and unknown risks, uncertainties and
other factors that may cause the actual events to be materially
different from any future events expressed or implied by such
forward -looking statements. Words such as “may”, “will”, “expect”,
“believe”, “plan”, “intend”, “should”, “anticipate” and other
similar terminology are intended to identify forward looking
statements. Such forward looking statements involve significant
risks and uncertainties, should not be read as guarantees of future
results, and will not necessarily be accurate indications of
whether or not such results will be achieved, or when such results
will be achieved. A number of factors could cause actual results to
vary significantly from the results discussed in the forward
looking statements. These forward looking statements reflect
current assumptions and expectations regarding future events and
are made as of the date hereof and Constellation assumes no
obligation, except as required by law, to update any forward
looking statements to reflect new events or circumstances.
About Constellation Software Inc.
Constellation Software acquires, manages and builds vertical
market software businesses.
Contact:
Jamal BakshChief Financial OfficerTel:
416-861-9677jbaksh@csisoftware.comwww.csisoftware.comwww.sedar.com
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