Serial Acquirers Market Update: Lumine Group Hits It Out of the Park and Mutually Beneficial Acquisition Expands Canadian Reach
Lumine Group Reports Strong Q4 2024 Results and Vancouver-based Pocketed Acquired by Multi-Billion Dollar Giant Deloitte Canada.
Lumine Group Reports Strong Q4 2024 Results
Lumine Group, a Canadian communications and media software serial acquirer, recently announced its Q4 2024 and fiscal year end results. The company reported strong financial growth, which led to a modest increase of 1.8% in its share price.
Originally spun off from Constellation Software in February 2023, Lumine was established to focus more effectively on the communications industry and enhance shareholder value. By leveraging Constellation Software’s successful acquisition model, Lumine employs a “buy-and-hold forever” strategy and has completed 29 acquisitions to date. If you’ve been following my content, you know that this buy-and-hold approach resonates with the way our team at SureSwift Capital handles acquisitions.
Clearly, Lumine’s long-term approach has paid off. Annual revenue has grown from US$166.4 million in 2020 to US$668.4 million by 2024, while operating income rose from US$29.4 million to US$111.5 million over the same period. These robust results have been reflected in its share price, with the stock rising 156% since the spin-off in 2023.
Lumine’s success is a testament to the effectiveness, scalability, and replicability of Constellation Software’s acquisition strategy—a model that continues to deliver outstanding results for investors.
Whether you’re an investor interested in Canadian serial acquirers or a founder of such companies yourself, it’s worthwhile to keep a close eye on how Lumine Group performs.
Vancouver-based Pocketed Acquired by Multi-Billion Dollar Giant Deloitte Canada
In an exciting development, Vancouver-based FinTech startup Pocketed has been acquired by Deloitte Canada for an undisclosed amount. This strategic move aims to seamlessly integrate Pocketed’s innovative grant and tax credit matching program into Deloitte’s suite of products. The acquisition is mutually beneficial, with Pocketed’s matching program and AI capabilities enhancing Deloitte’s offerings related to grants and the Scientific Research and Experimental Development (SR&ED) tax incentive program. In turn, Pocketed benefits from leveraging Deloitte’s innovation ecosystem to reach new clients and geographies.
Pocketed, which launched in 2020, has transformed the way entrepreneurs overcome financial barriers. Its innovative platform helps eliminate financial barriers by connecting businesses to eligible grants and tax credits while also assisting with the application process. Pocketed demonstrated success in its seeding phase, raising $1-million CAD to support its expansion into the US.
The company boasts of having helped over 17,000 businesses access over $200 million in grants, tax credits, and incentives. As part of the acquisition, the entire Pocketed team, including its co-founders, will join Deloitte Canada as an independent brand within the Gi3 practice, named “Pocketed, a Deloitte business.”
In a recent statement, Pocketed emphasized that they are still the same company but now benefit from the support of a multi-billion-dollar firm and an exceptional team across Canada. With Deloitte’s backing, Pocketed is now positioned for even greater success to come.
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A Gateway to New Opportunities
Many founders agree that an exit is not the end of their journey, but rather a new opportunity for growth. Thomas Smale and I share this mindset, as our departures gave us the freedom to “do more with more.” Leveraging this freedom is key to starting another business and pursuing new avenues for success.