About this episode
There is a small city in the Netherlands, called Deventer. It is a medieval city known for its printing history and its gingerbread. What many people don’t know is that it’s home to one of Europe’s most interesting VMS serial acquirer compounding machines: Topicus.com.As we know, vertical market software businesses have been subject to huge market pressure lately. The question is whether the worries of investors are grounded or not. Topicus isn’t just any VMS company; it has a well-known brother that delivered investors a 13,700% return since 2006: Constellation Software. In the acquisition announcement in 2020, Mark Leonard understated the rare organic success of Topicus: "I cannot think of another vertical market software company that has achieved Topicus' size without using outside shareholder funding."Since its listing in 2021, Topicus has grown revenues from roughly €600 million to €1.5 billion in 2025, with a significant acceleration in 2025 driven by both organic growth and the acquisition of Cipal Schaubroeck, a Belgian local government software provider. More recently, the company made an even bolder move: taking a 24.8% stake in Asseco Poland, an fascinating serial acquirer based in Poland.Now, let’s learn more about Topicus, its business model, capital allocation strategy, and the involvement of Constellation Software. Let’s answer the most important question: is the share price drop justified? Disclaimer:Nothing in this podcast can be considered financial advice. This is for educational purposes only. We may hold positions in the businesses discussed. Do your own research.You can also find us on:X @DutchInvestorsSubstack @The Dutch InvestorsInstagram @The Dutch Investors
