Serial Acquirers Market Update: Topicus Rises on Strong Quarterly Results and a Historic Milestone for Canada’s EV Market
Topicus Reports Q1 2025 Results and 7Gen Secures Landmark Debt Financing Deal
Topicus, a vertical market software serial acquirer, recently announced its first quarter 2025 results, reporting a 16% increase in revenues and a 21% growth in free cash flow to shareholders compared to Q1 2024. Share price rose 5% on the news, up 184% from its lows in 2022.
For background, Topicus was spun-out of Constellation Software in 2021 to advance its strategy of building a leading European vertical market software company while remaining part of Constellation Software’s global ecosystem. Leveraging the success of Constellation Software’s acquisition and operational model, Topicus also focuses on decentralization, autonomy, and creating an environment where employees can excel.
A significant factor contributing to Topicus’ success is its emphasis on acquiring mission-critical and high-impact companies. With its diversified portfolio spanning 40 vertical markets and 26 countries, it’s no surprise that the company has consistently delivered strong results despite macroeconomic uncertainty and market volatility.
As artificial intelligence continues to disrupt many industries, particularly within the software sector, serial acquirers must adapt by targeting potential acquisitions with a long-term perspective. Are the company’s products and services essential or only nice-to-have for customers? Are the company’s products easily replicated by AI? Do you have a reasonable line of sight to the longevity of the company? Moving forward, knowing the answers to these questions will be even more crucial to the long-term success of serial acquirers in the technology industry.
Learning from Topicus and other high-performing serial acquirers has allowed me to learn and adapt as Chair at SureSwift Capital. Whether you’re an aspiring serial acquirer, investor, or business leader, there’s always something valuable to learn from industry leaders like Topicus.
Disclosure: I own shares of Topicus. Views expressed are my own and should not be considered investment advice.
7Gen's Groundbreaking Debt Financing with Zenobē Signals Major Advancement in Canada's EV Sector
Montreal-based Seven Generation Capital (7Gen), an EV-as-a-service platform specializing in leasing, infrastructure deployment, and supporting software, has announced a historic debt financing deal with Zenobē. Valued at CAD $48 million, this transaction is reported by 7Gen to be the largest private EV debt financing deal in Canadian history, underscoring the scalability and financial viability of the EV market.
With this senior debt financing, 7Gen is positioned to finance up to 500 new electric vans, buses, and trucks, complete with charging infrastructure, while refinancing part of its existing fleet. Altogether, this deal significantly reduces 7Gens overall risk profile.
Zenobē, a United Kingdom-based specialist in EV fleet and grid-scale battery storage solutions, facilitates the financing and deployment of EVs and currently supports over 2,000 EVs globally. This deal marks Zenobē’s inaugural investment into the Canadian market and highlights the country’s strong consumer interest in EVs. Supportive government policies and the availability of clean, affordable power make Canada an increasingly viable market for EVs, contributing to a lower cost of ownership for zero-emissions vehicles. This market is particularly important for 7Gen, which has relocated its headquarters from Vancouver to Montreal, with Quebec being its most significant market.
Fran Tjallingii, CEO of 7Gen, has acknowledged the challenges posed by the global trade war and the uncertainty it has created for many businesses. However, he assures that the EVs offered by 7Gen are generally compliant with the Canada-United States-Mexico Agreement (CUSMA) and are not expected to be subject to U.S. tariffs.
With this historic deal, increased investment in charging infrastructure and advanced value-added services, favourable policies, growing consumer interest, and ongoing investments in infrastructure and technology, Canada's EV market is positioned for substantial growth.
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