Constellation Software vs Vitec

We hardly ever see Constellation or Topicus in the same deals as us - CEO of Vitec, March 2025

This comment from our recent meeting with Vitec in Stockholm piqued our interest. How can Vitec, a Nordic VMS acquirer, ‘hardly ever’ see any Constellation operating group when acquiring VMS assets across Europe? 

One simple explanation is that the companies have different targets: Vitec typically buys higher-growth SaaS companies for ~10x+ EBIT whereas CSU typically buys on-premise, slower-growing assets for 4-6x EBIT. Vitec and other competitors claim Constellation focuses on the ‘lower end’ of the market and relies on post-acquisition price increases and cost reductions to drive returns.