Press release from Marketwire
Constellation Announces Update in Relation to a Previously Disclosed Customer Dispute
Monday, July 22, 2013
Constellation Announces Update in Relation to a Previously Disclosed Customer Dispute20:18 EDT Monday, July 22, 2013
TORONTO, ONTARIO--(Marketwired - July 22, 2013) - Constellation Software Inc. (TSX:CSU) ("Constellation") today announced that one of its wholly-owned subsidiaries has obtained a court ruling in relation to a previously disclosed customer dispute.
On December 30, 2012 Constellation announced that it had obtained an arbitration ruling in relation to a previously disclosed customer dispute in which the arbitrators concluded that no amounts were owing from the subsidiary to the customer for the various claims made by the customer and that the customer owes the subsidiary approximately $10 million in fees for services provided and for amounts owing due to a breach of contract by the customer.
A California court, in answer to the customer's petition to vacate the arbitrator's ruling and Constellation's petition to award, has now issued a ruling that reduces the arbitrator's award from approximately $10 million to approximately $6 million.
Constellation will follow the required procedures to enforce the court ruling and is currently assessing the impact of this ruling on its financial results. As at March 31, 2013 no amounts had been recorded in Constellation's financial results with respect to the original arbitrator's decision.
Further details of the customer claim and dispute can be found in Constellation's March 31, 2013 unaudited financial statements and Management Discussion and Analysis under "Acquisition of certain software assets and liabilities from MAXIMUS Inc.".
About Constellation Software
Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses that provide mission-critical software solutions to address the industry specific needs of its customers.
FOR FURTHER INFORMATION PLEASE CONTACT:
Constellation Software Inc.
Chief Financial Officer