Core Insights - Constellation Software Inc. is a Toronto-based technology investor focused on acquiring and scaling vertical market software businesses that provide mission-critical applications across various sectors [1][2] - The company's decentralized model has led to decades of acquisitive growth, with operating groups like Volaris Group, Harris Computer Systems, and Jonas Software becoming market leaders in their niches [1][3] - Investors are particularly interested in Constellation's acquisition cadence, recurring revenue profile, and long-term value creation strategy [1] Business Model and Strategy - Constellation operates as an acquirer and manager of vertical market software firms, emphasizing stable recurring revenues and high customer retention in fragmented markets [2][6] - The operational structure is decentralized, allowing local management to maintain autonomy while benefiting from centralized capital allocation and acquisition capabilities [3][17] - The focus on mission-critical applications results in high customer loyalty and reduced price sensitivity [2][17] Financial Overview - As of October 23, 2025, Constellation's market capitalization is approximately CAD 57.57 billion, with around 21.19 million shares outstanding [7][10] - The trailing twelve months (TTM) earnings per share (EPS) is approximately 39.81, and the price-to-earnings (P/E) ratio is around 93.64, indicating strong market expectations for continued earnings growth [9][10] - The company has a modest annual dividend of CAD 5.60, yielding about 0.15%, reflecting a preference for reinvestment over large cash payouts [9][10] Operational Structure - Constellation's operating groups include Volaris Group (targeting smaller vertical software businesses), Harris Computer Systems (focused on public sector and utilities), and Jonas Software (specializing in hospitality and fitness) [3][15] - The company maintains a diverse portfolio with specialized brands such as Trapeze Group, Total Specific Solutions, and healthcare platforms like HEALTHCAREfirst and Emphasys Software [1][14] Market Position - Constellation is listed on the Toronto Stock Exchange under the ticker CSU and is recognized as one of Canada's largest technology companies by market capitalization [28][33] - The company's relatively small public float compared to its market cap can lead to price volatility, making it important for investors to monitor trading volumes [29][30] - Constellation's focus on vertical market software provides a competitive advantage through deep domain knowledge and customer lock-in due to mission-critical deployments [17][20]

Core Insights - Topicus.com Inc. is a Netherlands-based company focused on acquiring vertical market software (VMS) companies in the European market, currently operating in 40 different verticals [1] Investment Strategy - The company seeks businesses with strong cash-generating capabilities and competitive advantages, aiming for at least 15 percent annualized returns or deeply discounted prices relative to their asset base [1] - The investment approach includes considering takeover targets, provided they maintain strong business fundamentals [1] Performance Metrics - The company has achieved an annualized time-weighted return of approximately 16 percent over the past three years [1]