Hi Partner 👋

It’s time to wrap up serial acquirer week.

Today, it’s time for the most fun part: building a serial acquirer portfolio.

We found 12 very exciting names.

On average, these names compounded shareholder returns at +34% per year!

Let’s dive in right away.

Before we start

Before we start, it helps to structure the portfolio in 4 buckets.

Each bucket consists of 3 serial acquirers. That way, we have a portfolio of 12 names.

There are the buckets we will use:

1. VMS Serial Acquirers

2. Swedish Serial Acquirers

3. Industrial Serial Acquirers

4. Special Serial Acquirers

Bucket 1: VMS Serial Acquirers

Vertical Market Software (VMS) is software for very specific needs.

Think about software that runs libraries, golf clubs, or … chicken coops.

This model makes a lot of sense for Vertical Market Software businesses.

Why? Let’s say you have a chicken coop software company that counts eggs.

It sounds strange, but Constellation ($CSU) actually owns such a business.

Chicken coop software companies are great:

• Not a single MIT student is thinking about disrupting it

• Competition is very limited

• It’s mission-critical

• It generates strong, recurring cash flows

Yet, chicken coop software companies face one major disadvantage: there is limited runway to reinvest.

That’s exactly why it makes sense to build a serial acquirer above these businesses.

You get to own these wonderful businesses, while M&A gives you room to reinvest.

Let’s add three businesses to the portfolio that use the VMS Serial Acquirer:

1. Sygnity ($SGN)

2. Chapters Group ($CHG)

3. Software Circle ($SFT)

1. Sygnity ($SGN)

There are five public companies from the Constellation universe:

• Constellation Software itself

• Topicus

• Lumine

• Asseco Poland

• Sygnity

Out of these five, Sygnity had the best H1 2026 results:

• H1 2026 revenue growth of +47%

• H1 2026 EBITDA growth of +74%

Despite these impressive results, the valuation remains very cheap at a Forward EV/EBITDA below 12x.

The reason for this low valuation?

The low public float plays a big role.

Topicus alone already owns 72.7%. The public float is probably around 10%.

This makes it impossible for larger investors to open a position.

Sygnity is also the only company in the Constellation universe that hasn’t recovered from AI fears yet: