Constellation Buys Two More Software Firms, Releases 3Q Figures
November 13, 2012 Alex Woodie
We’re 13 days into November, and the hungry software conglomerate Constellation Software has already gobbled up two more software firms, including a German developer of Windows-based ERP systems for window companies, and a UK developer of payment collection software. The Canadian software company also announced financial results for its third quarter. Constellation announced yesterday that it signed a definitive agreement to buy the Albat+Wirsam Software GmbH (A+W) business from Glaston, a global manufacturer of glass processing technology that’s based in Finland. The deal currently carries a price tag of €18 million (about $23 million), but the price is contingent. It’s expected to close by the end of the year. A+W, which is based in Germany, employs about 190 people who focus on the development of an ERP application called Cantor that’s used by 1,500 window and door manufacturers and dealers around the world. The software, which is Windows-based, and the A+W business will become part of Friedman Operating Group , which is a developer of IBM i-based ERP software for windows and door makers, and also one of Constellation’s main holding companies. The other deal, announced November 1, is for London & Zurich Plc (L&Z), a provider of direct debit and collection management software. Constellation says L&Z has more than 25,000 customers in various vertical industries around the world. The acquisition has been completed, and L&Z has become part of Constellation’s Jonas Operating Group. Over the last few years, Toronto, Ontario-based Constellation has completed dozens of acquisitions across its six operating groups, which include three private-sector groups (Friedman, Jonas, and Homebuilder) and three in the public sector (Volaris, Harris, and Emphasys. Friedman contains most of the IBM i assets, including IBM i shipping software developer Varsity Logistics; Computer Solutions Inc. (CSI), a Florida developer of order management and e-commerce applications for IBM i; and Viewlocity Technologies, a Dallas, Texas-based developer of supply chain management software for IBM i and other platforms. Interestingly, Wynne Systems, a developer of IBM i software for the rental equipment market, is part of Constellation’s Volaris group. On October 31, Constellation announced financial results for its quarter ended September 30. Total revenue grew 12 percent to $226 million, compared to $202 million in the third quarter of 2011. On an organic basis (Constellation completed seven acquisitions during the third quarter alone), revenue came in 2 percent lower than a year ago, when it grew 11 percent. Adjusted net income grew 6 percent to $42 million, or $1.99 per diluted share. The company’s stock price was unaffected by the financial results, and is trading 78 percent higher than it was a year ago. RELATED STORIES Friedman Nabs CORESense as Constellation’s Umbrella Grows Is Constellation Software on the Block? Friedman Nabs Viewlocity for SCM Friedman Expands Offerings for Windows Manufacturers Beyond i OS Four More Software Vendors Join IBM’s ISV Advantage Triple-Merger of SynQuest, Viewlocity, and Tilion Announced
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