NexJ Systems (TSX:NXJ) and N. Harris Computer Corporation, a subsidiary of Constellation Software (TSX:CSU) came to an agreement today that has Harris picking up all of NexJ’s outstanding common shares.
The acquisition will bring NexJ into a financially stable portfolio of companies in support of Constellation’s future growth objectives. Constellation’s business philosophy includes long-term value realization and commitment to the companies in its portfolio, which will protect its customers’ existing and future investments in NexJ’s tech.
“Constellation’s buy and hold investment strategy and commitment to providing customers software for life makes Harris a perfect permanent owner of NexJ. NexJ prides itself in its ‘customer-first’ mentality. Once NexJ is acquired by Harris, our customers who rely on our technology to support the day-to-day operations of their business will continue to receive exceptional dedicated support and services for all NexJ products,” said Paul O’Donnel, NexJ CEO.
Harris’ is Constellation’s acquisitions arm. Its deal involves acquiring vertical market software businesses, managing them using best industry practices, and retrofitting them for the future. It has grown from its sector roots in utilities, local government, education and healthcare, and now includes over 180 businesses across the world in over 20 industries. Constellation specifically is into investing in and managing software companies with a strong industry presence, and has been doing this in a variety of markets for over 25 years.
Now with the strong financial backing offered by Constellation (and Harris), NexJ can continue its focus on building world-class customer relationship management and integrated advisor desktop solutions for wealth management and private banking, as well as corporate and commercial banking.
“The acquisition by Harris, a wholly owned subsidiary of Constellation will provide the financial strength and operational support required as NexJ continues its transition to a subscription-based license model and seeks to grow its global competitiveness and provides a secure future for our customers and employees.” said Scott Beattie, chair of NexJ’s board.
The terms of the agreement bring a cash consideration of CAD$0.55 on a fully diluted basis to NexJ shareholders for each share they hold. This is a 45 per cent premium on the closing price of NexJ shares on the TSX as of August 26, 2022, and an approximate 35 per cent premium to the volume weighted average price of the company’s shares over the past 20 trading days.
