Constellation Software on Track for Record M&A Year Despite 3Q Hiccup

Dow Jones11-10

1220 GMT - Constellation Software remains on track for a record year despite falling short on third-quarter M&A deployment, RBC's Paul Treiber says. The Canadian software company deployed $576 million in the quarter, below the $1 billion RBC expected, in part because several committed acquisitions hadn't yet closed by the end of the quarter. However, in the fourth quarter so far, Constellation has committed another $673 million, and the year-to-date figure is hovering around $2.79 billion, net of cash acquired, Treiber notes. That sum is ahead of the prior record of $2.6 billion set in 2023. "Management characterized M&A as very busy across all geographies and verticals, even though private market software valuations have not materially declined," the analyst says. Constellation should hit $2.9 billion in M&A deployment in 2026, and $3 billion in 2027, Treiber notes.

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