Constellation Software : 2019 Annual Information Form

CONSTELLATION SOFTWARE INC.

Annual Information Form

March 27, 2020

CONSTELLATION SOFTWARE INC.
ANNUAL INFORMATION FORM
TABLE OF CONTENTS
FORWARD-LOOKING STATEMENTS .................................................................................................	1
CORPORATE STRUCTURE ...................................................................................................................	2
NAME AND INCORPORATION .....................................................................................................................	2
INTERCORPORATE RELATIONSHIPS ...........................................................................................................	3
GENERAL DEVELOPMENT OF THE BUSINESS ................................................................................	7
OVERVIEW...............................................................................................................................................	7
ACQUISITIONS..........................................................................................................................................	8
RIGHTS OFFERINGS...................................................................................................................................	9
DESCRIPTION OF THE BUSINESS .....................................................................................................	10
OVERVIEW.............................................................................................................................................	10
BUSINESS STRATEGY .............................................................................................................................	10
OPERATING GROUPS ..............................................................................................................................	12
PRODUCTS .............................................................................................................................................	16
SALES AND DISTRIBUTION STRATEGY .....................................................................................................	16
RESEARCH AND DEVELOPMENT ..............................................................................................................	16
INTELLECTUAL PROPERTY ......................................................................................................................	16
FOREIGN OPERATIONS............................................................................................................................	17
COMPETITION ........................................................................................................................................	17
EMPLOYEES ...........................................................................................................................................	17
RISK FACTORS .......................................................................................................................................	17
DIVIDENDS.............................................................................................................................................	29
DESCRIPTION OF CAPITAL STRUCTURE .......................................................................................	30
MARKET FOR SECURITIES......................................................................................................	34
ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION
ON TRANSFER.......................................................................................................................................	35
DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY...................................................	36
BIOGRAPHIES .........................................................................................................................................	37
COMMITTEES OF THE BOARD ..................................................................................................................	41
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS .......................	42
LEGAL PROCEEDINGS........................................................................................................................	43
TRANSFER AGENT AND REGISTRAR ..............................................................................................	43
INTERESTS OF EXPERTS....................................................................................................................	43
CONFLICTS OF INTEREST .................................................................................................................	43
ADDITIONAL INFORMATION ............................................................................................................	43

CONSTELLATION SOFTWARE INC.

ANNUAL INFORMATION FORM

All references in this Annual Information Form to ''CSI'', the ''Company'', ''we'', ''us'', ''our'' and ''our company'' refer to Constellation Software Inc. and its subsidiaries, unless the context requires otherwise. Unless otherwise indicated, all references to dollar amounts herein are to United States dollars.

All information contained herein is as at December 31, 2019 unless otherwise noted.

FORWARD-LOOKING STATEMENTS

Certain statements in this Annual Information Form may constitute "forward-looking" statements which involve risks (including those which may arise in the future), uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this Annual Information Form, such statements use such words as "may", "will", "expect", "believe", "plan", "intend" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this Annual Information Form. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors". Although the forward-looking statements contained in this Annual Information Form are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this Annual Information Form and, except as may be required by law, the Company assumes no obligation to update or revise them to reflect new events or circumstances.

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CORPORATE STRUCTURE

Name and Incorporation

The Company was incorporated under the Business Corporations Act (Ontario) on August 23, 1995. On March 7, 2000, the Company amalgamated with e2 Inc. and on June 29, 2000, the Company filed articles of arrangement, authorizing the transfer of all of the shares of Friedman Acquisition Corp., Creative Computer Solutions Inc. and Memory Lane Systems Inc., each a then wholly-owned subsidiary of the Company, to Constellation Software USA Inc. In connection with the arrangement, the Company issued 85,672 common shares in exchange for 259,595 common shares of N. Harris Computer Corporation and 667,013 common shares in exchange for 250,691 common shares of Trapeze Software Inc. The Company amalgamated with Constellation Justice Systems Inc. on March 1, 2002.

Concurrently with the closing of its Initial Public Offering on May 18, 2006, the Company's share capital was reorganized to remove the previously existing series 1 and series 2 common shares, and to redesignate the previously existing series 3 common shares as Common Shares (the "Common Shares").

On October 2, 2013, the Company's shareholders (i) adopted a special resolution authorizing and approving an amendment to the articles of the Company in order to remove the Class A Non-Voting Shares, and (ii) adopted a special resolution authorizing and approving an amendment to the articles of the Company in order to create a new class of preferred shares designated as Class A Preferred Shares ("Preferred Shares"), to be issuable at any time and from time to time at the discretion of the Board of Directors of the Company (the "Board" or the "Board of Directors") in one or more series. Articles of amendment reflecting these changes to the Company's authorized capital were filed on March 28, 2014.

The Company's head and registered office is located at 20 Adelaide Street East, Suite 1200, Toronto, Ontario, Canada, M5C 2T6, telephone: [phone],Web-site:www.csisoftware.com. The contents of the Company's web-site are not incorporated by reference into this Annual Information Form.

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