Constellation Software looks to ‘experiment’ by buying Canadian VC-backed companies
Summary
But it is now also “looking for venture capital-backed businesses that did not live up to investors’ or founders’ expectations, companies that are running out of options,” said Farley Noble, senior vice-president of Constellation’s large investment group, in an interview. Its six subsidiaries typically buy companies with US$2-million to US$10-million in annual sales, modest growth, a high degree of recurring revenues, solid cash flows and operating profits, and preferably few rivals. Constellation’s long track record has earned it a reputation as a top-notch capital allocator, and media-shy president Mark Leonard has drawn comparisons to Warren Buffet. “This is a company that, despite its size, still puts up strong and respectable cash flow and operating earnings growth,” said Thanos Moschopoulos, a BMO Capital Markets analyst. Mr. Leonard has expressed interest in looking outside the company’s comfort zone for deals and even explored deploying US$1-billion into the oil industry when prices crashed a few years ago.
Classifications
AskAI Classifications
LabelsLinked Companies
