By Robb M. Stewart


OTTAWA--Constellation Software Inc. said Monday it will buy U.S. software provider WideOrbit Inc. to be merged into its Lumine Group subsidiary, which in turn will be spun off as a separately-listed company.

Constellation, which buys and manages software businesses, said it entered a binding agreement to acquire WideOrbit, which will become an autonomous business unit within Lumine's portfolio of companies. The deal will be financed with funding from Constellation and a banking partner and paid for in cash plus the issuance of an almost 14% stake in Lumine, it said.

The purchase of WideOrbit, which had revenue in 2021 of about $167 million, is scheduled to close in the first quarter of next year.

Constellation said a preliminary prospectus has been filed in Canada for the planned distribution of Lumine shares as part of its being spun off. Constellation said it will remain the majority shareholder of the company.

The spin out and listing are subject to the approval of the TSX Venture Exchange, and acceptance of the final prospectus by Canadian securities regulators.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

12-12-22 1355ET