Constellation Software Inc. (TSX:CSU) has bought WideOrbit Inc and plans to merge the US tech company with its Lumine Group subsidiary before spinning them off into a separate business.
The Toronto software company will remain the majority shareholder of Lumine Group and will distribute to the current Constellation shareholders, pro-rata and by way of a dividend-in-kind, nominal value subordinate voting shares of Lumine Group.
Full terms of the deal, which is set to be closed in the first quarter of 2023, were not disclosed but the purchase will be financed from existing resources and from a banking partner.
There will be a cash payment plus the issue to eligible WideOrbit shareholders of 13.83% of the shares of Lumine Group.
David Nyland, CEO of Lumine Group, commented: “WideOrbit will accelerate Lumine Group’s expansion into the media space.”
“We are excited to dive deeper into the media space during this period of rapid innovation, and partner with WideOrbit to assist us in navigating the ecosystem and pursuing further acquisitions.”
Contact Jeremy at jeremy@proactiveinvestors.com