Constellation Software taking over Topicus

Toronto-listed technology investor Constellation Software has unveiled plans to acquire, a Netherlands-headquartered provider of diversified vertical market technology. The firm is carrying out the deal, which will be financed using cash on hand and an existing revolving credit line, via its TSS operating group and subsidiary TPCS Holding in order to establish a new operating group. Constellation is buying the business from Ijssel. The consideration will be in the form of cash and stock; the buyer will issue shares in the new operating group amounting to a 9.0 per cent shareholding. Following closing, TSS and Topicus will operate under the operating group name, with the enlarged business planning to work towards an initial public offering at an as yet to be determined point in the future. Constellation said it would continue to hold a significant stake in the business following any listing. Completion is expected to follow later in the current calendar year, subject to the green light from the Dutch Competition Authority, among other conditions. Topicus chief executive Daan Dijkhuizen said: “We see TSS as the designated partner to realize our further growth ambitions in Europe. The intended collaboration contains a wealth of opportunity for our team members, customers and product offerings. “The mutual complement lies in the bundling of knowledge of and experience in healthy business operations, effective and customer-oriented services in combination with innovative strength.” Established in 2001, Topicus now employs around 1,000 people. It claims to be a leader in building and running smart vertical market software. Zephyr, the M&A database published by Bureau van Dijk, shows that, of the 331 deals targeting computer systems design services providers to have been announced worldwide during 2020 to date, the largest is valued at USD 1.70 billion. That transaction took the form of a capital increase and saw China-based Unisplendour issue stock via a private placing in late April. © Zephus Ltd

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