A spin-off from a division of Constellation Software, Lumine Group shows strong short- and long-term growth potential. This is the analysis presented by Yannick Clérouin and Karine Turcotte, portfolio managers and partners at Medici, in the newspaper Les Affaires and on lesaffaires.com.
Specializing in software for the media and telecommunications sectors, Lumine Group is said to be “a true acquisition machine”. “Over the past four years, it has deployed approximately US$ 850 million in acquisitions. Since 2014, the group has acquired nearly 30 companies, including the impressive deal for WideOrbit, valued at US$ 505 million.”
Yannick and Karine add that, like Constellation, Lumine benefits from significant competitive advantages. Its software is essential for the daily management of TV and radio stations or call centres; the costs and challenges associated with switching make its clients captive.
Additionally, Lumine aims to remain the “forever” owner of the companies it acquires. This approach becomes an advantage with executives looking to divest activities, as it reassures them of their longevity. This sets it apart from opportunistic competitors with a shorter investment horizon.
For more details, see the translated article in full. If you are a subscriber, you can read the original version on lesaffaires.com.
Disclaimer: Medici and its clients hold shares of Constellation Software and Lumine Group.
