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Software & services

Constellation Software sees acquisitions drive big 4Q profit growth

Constellation Software Inc. (TSX:CSU) reported fourth-quarter revenue and earnings that showed significant year-over-year growth Wednesday evening.

In the three months ended December 31, the Toronto-based company saw revenue of $1.84 billion, up 34% year-over-year from $1.38 billion. Net income jumped 23% year-over-year to $152 million, $7.19 on a diluted per share basis, from $124 million and $5.86 per share.

The company attributed the increases to a series of acquisitions, rather than organic growth. A number of acquisitions were completed for a total cash consideration of $211 million. Deferred payments associated with these acquisitions have an estimated value of $66 million, for a total consideration of $277 million.

Since the quarter ended, Constellation Software spun out a subsidiary Lumine Group Inc following the latter's merger with WideOrbit Inc.

Additionally, the software company declared a $1 per share dividend payable on April 14 to all common shareholders of record as of the close of business on April 6.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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