12 Dec 2022
Constellation Software Inc. and Lumine Group Inc. Merge to Acquire WideOrbit
On February 22, 2023, Constellation Software Inc. and its subsidiary, Lumine Group Inc., announced the completion of their merger plan to acquire 100% shares of US-based software provider, WideOrbit Inc. With this, WideOrbit became a fully-owned subsidiary of Lumine Group and will function as an independent business entity within Lumine's company portfolio.
Subsequent to this, Lumine Group was separated from Constellation and will commence operations as an independent public company. To mark the completion of this "Spin-Out", on February 23, 2023, all of Constellation’s common shareholders as of February 16, 2023, are to receive 3.0003833 subordinate voting shares of Lumine for each of their Constellation shares. These Lumine Shares are set to be listed on the TSX Venture Exchange, with trading projected to start around March 24, 2023, under the "LMN" symbol.
Eric Mathewson, the Founder and CEO of WideOrbit, has taken a position on the Lumine Group's Board of Directors. WideOrbit, founded in 1999 by Mathewson, serves as the record system for over 5,000 global stations and cable networks, handling over $35 billion in advertising revenue yearly.
Post-acquisition, both Lumine Group's CEO, David Nyland, and WideOrbit's Eric Mathewson expressed enthusiasm for their merged future and its potential impact in the media and communication technology sector.
Lastly, concerning share distributions, following the Spin-Out, Constellation will own a 61.05% fully-diluted stake in Lumine. The Majority Special Shareholders, post-Acquisition, will have an 11.6% fully-diluted ownership in Lumine. In total, after the Spin-Out, 253,104,971 Lumine Shares will be issued and outstanding on a fully diluted basis.
