UTRECHT, The Netherlands, December 16, 2013 /PRNewswire/ --
Total Specific Solutions becomes important part of European ambitions of Constellation Software
Total Specific Solutions (TSS), the largest vertical market software (VMS) company in Benelux, takes the next step in its growth strategy with new owner Constellation Software Inc. (TSX:CSU). TSS has achieved successful and strong positions in the verticals of healthcare, finance and government. Together with Constellation Software, TSS will further strengthen its Benelux and European position.
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Vertical Market Software
TSS is characterized by its strategic vision that specific markets need specific software. This vision results in software that helps clients realise their ambitions faster, more efficiently and effectively. Because clients value the specific vertical market software of TSS, the company has developed into a successful company with strong market positions.
Although vertical market software is specific for each market but different from country to country, there are plenty of generic technological and social developments that make a European ambition possible. Examples are trends like "consumerisation of IT" and "big data". But also developments like cloud technology and business process outsourcing. These trends and developments tend to be generic for all European countries.
As part of Constellation Software, TSS will continue to develop its vertical market software by country. At the same time, clients and employees will benefit from the cross-fertilization between the countries in terms of trends, technological developments and innovations. Clients therefore get the best of both worlds; software specifically designed for their market in their country with the knowledge that this software is based on global knowledge, trends and developments.
Robin van Poelje, CEO Total Specific Solutions: "TSS wants to continue to grow and innovate. We anticipate that a new generation of software will increasingly be developed from a European perspective. Together with Constellation Software, we expect to continue to meet this rapidly developing demand in our markets."
"This acquisition provides us complementary software and technology in the general practitioners, pharmacies, long term care, mental care, property tax, and civil affairs markets" said Mark Leonard, President of Constellation Software. "We anticipate that the successful closure of this acquisition will bring added value to customers and will benefit employees and shareholders."
Constellation Software
The TSS vision and approach has made TSS the company, the platform it is today. To further enhance its growth objective, TSS asked for a change of shareholder. A shareholder with expertise in areas such as multidisciplinary software development and building an international network. The management of TSS, the Supervisory Board and shareholder Strikwerda Investments, through its subsidiary Joday Investments B.V., have searched for this new shareholder who can support the TSS growth objective. Constellation Software has specialised in vertical market software businesses, which fits perfectly with the strategy of TSS and will benefit the rollout of the TSS growth objective.
TASS
The management of TASS in the Netherlands and Belgium have looked at how they can best join the European VMS platform ambitions of TSS. TASS, as embedded software developer, has a service pack and market approach, which is very different from the other TSS companies. Because TASS will have little benefit from the VMS platform the management of TASS, in consultation with TSS, asked shareholder Strikwerda Investments not to sell the TASS shares to Constellation Software. This means that TASS per January 1, 2014 is no longer part of the TSS group, but continues as an independent company.
Transaction
Constellation Software Inc. has, through its wholly-owned subsidiary Constellation Software Netherlands B.V. ("CSN B.V."), entered into a binding agreement with Joday Investments B.V., as seller, to purchase 100% of the shares of Total Specific Solutions, for a total purchase price of approximately €240 million before adjusting for claims under the representations and warranties of the agreement. TSS will form a new operating group within Constellation Software.
About Total Specific Solutions
Total Specific Solutions (TSS) has 1,400 employees and a turnover of €174 million in 2012 (excluding employees and turnover of TASS). The TSS companies are specialized technology companies with a focus on a particular expertise or a specific market sector, "vertical market software". TSS software makes a fundamental difference to healthcare organizations, governments and financial institutions by helping them realizing their ambitions. The TSS companies are Everest, KZA, PharmaPartners, PinkRoccade Local Government, PinkRoccade Healthcare and Yonder.
Transaction advisors to TSS were Allen & Overy, ABN AMRO and KPMG.
About Constellation Software Inc.
Constellation Software Inc. ("Constellation") is a global provider of enterprise software solutions serving a variety of distinct vertical markets. Its principal strategy is to acquire, manage and build vertical market software businesses. Generally, these businesses provide mission critical software solutions that address the specific needs of customers in particular vertical markets. Constellation has five operating groups which currently service over 40,000 customers in approximately 60 different vertical markets worldwide. With its headquarters in Toronto, Canada, and offices in North America, Europe and Australia, Constellation has over 6,500 employees generating consolidated revenues exceeding US$800 million. Constellation is listed on the Toronto Stock Exchange.
More information about Total Specific Solutions can be found at http://www.totalspecificsolutions.nl.
More information about Constellation Software Inc. can be found at http://www.csisoftware.com.
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