Constellation Software's third-quarter revenue rises 19%

Constellation Software, a Toronto-listed firm that acquires, manages and builds vertical market software businesses, said third-quarter revenue rose 19% to US$3.5 billion, but only 2% was organic.

The company said the rise came primarily from acquisitions. Organic growth counts only the growth of businesses already owned, leaving out revenue from those bought. It is not a standardized measure, so it may not be comparable with other companies’ figures.

Over nine months organic growth was 4%; in the second quarter, when revenue rose 17% to US$3.3 billion, it was 3%. Acquisitions completed in the third quarter cost US$484 million in cash, or US$609 million with deferred payments. Net income, though, barely moved, at US$212 million against US$210 million.

The buying has continued: since September 30, Constellation has completed or committed to buy businesses for US$526 million in cash, or US$673 million with deferred payments.

Sources: Yahoo Finance · GlobeNewswire · Constellation Software Inc.