Your Frequently Asked Questions, Answered
About PYXiS & Our Business Model
What is PYXiS Software Group?
PYXiS Software Group is an acquirer of mission-critical vertical market software businesses. We are a subsidiary of Jonas Software, which in turn is part of Constellation Software Inc. (CSI)—one of the largest and most successful software acquirers in the world.
Jonas Software operates more than 175 companies across diverse industries.
Constellation Software Inc. (CSI) is publicly traded on the Toronto Stock Exchange (TSX: CSU) and has successfully acquired and grown 1,300+ companies worldwide.
Unlike private equity firms or strategic buyers, we never sell the companies we acquire. We focus on long-term ownership, autonomy, and helping our businesses grow sustainably.
How is PYXiS different from private equity (PE) firms or strategic buyers?
Unlike traditional PE firms, we don’t buy businesses to flip and sell for short-term profits. PYXiS provides a permanent home for businesses, ensuring they continue to thrive long-term.
If Constellation Software (CSI) never sells its companies, how does it make money?
CSI follows a long-term buy-and-hold strategy instead of flipping businesses. We acquire and scale companies using best practices developed across 1,300+ acquisitions. As these businesses grow, their intrinsic value contributes to CSI’s overall market value as a publicly traded company on the TSX.
What criteria does PYXiS use when considering an acquisition?
We don’t have strict revenue or profitability requirements—each company is assessed holistically. Factors include:
- Industry fit with our portfolio
- Growth potential & profitability (we consider companies with either or both)
- Customer base, revenue model & attrition rates
- Competitive landscape & technology stack
What does the name "PYXiS" represent?
The name PYXiS comes from the constellation Pyxis, which is known as the navigator’s compass. This reflects our mission:
- Guiding software businesses toward long-term stability and success
- Providing a permanent home for the companies we acquire
- Helping founders and leaders chart their own course with our support when needed
The PYXiS "ABCs"
What is PYXiS Software Group?
Founders and business leaders know their industries best. That’s why all acquired companies maintain the following:
- Full operational independence
- Their own unique culture and identity
- Control over strategic decisions
We provide support and best practices, but day-to-day decisions remain in the hands of the existing leadership team.
What does "Buy and Hold Forever" mean?
Unlike traditional buyers, PYXiS has a forever home philosophy. This means:
- We never resell companies—they remain part of our portfolio permanently.
- No short-term cost-cutting measures—our goal is long-term stability and growth.
- Companies retain their identity—we don’t merge or rebrand them.
For business owners, this means security, continuity, and the freedom to focus on what matters to them.
What is the "Culture of Sharing Best Practices"?
Being part of PYXiS gives companies access to a network of 1,300+ successful software businesses. This provides:
- Proven strategies for growth
- Operational insights and benchmarking data
- A network of business leaders facing similar challenges
Leaders remain independent but can tap into a wealth of knowledge to optimize performance and drive sustainable growth.
Valuation & Deal Structure
What does the acquisition process look like?
Our acquisition process typically includes the following:
- Introductory conversation – We discuss your goals and determine if there’s a fit.
- Financial review – We assess key metrics, profitability, and growth potential.
- Letter of intent (LOI) – If both parties agree, we outline the deal terms.
- Due diligence – We review contracts, customer retention, tech stack, and financials.
- Closing – Finalizing agreements and transitioning to our portfolio.
How do you determine the value of a company?
We assess valuation based on multiple factors, including:
- Competitive landscape
- Customer attrition & retention
- Revenue model & business size
- Projected future net income
We use these factors in conjunction with our hurdle rates (the timeframe in which we aim to recover our investment).
How do you structure your purchase price payments?
Typical deal structures include:
- Upfront guaranteed payment
- Potential follow-up payments (1-2 years post-acquisition)
- Earn-out structure (for growth-stage companies, offering a percentage of ARR growth)
My company is breaking even because we reinvest profits into growth. How does that impact valuation?
Profitability isn’t a strict requirement, but we need to see a clear path to sustainable profits. Deal structures are flexible—depending on your company’s stage, we may adjust the upfront vs. earn-out balance to align with growth projections.
Do you use debt financing for acquisitions?
Generally, we do not use debt to finance acquisitions. CSI is a cash-rich company, meaning we use our own funds rather than taking on debt to fund deals.
Will I receive 100% of the purchase price upfront?
It depends. Some deals include a guaranteed upfront payment and potential earn-out payments tied to performance.
Life After Acquisition
What will my role look like post-acquisition? Who will I report to?
PYXiS operates with a decentralized structure, meaning:
- You remain the expert in your industry and lead daily operations.
- Your company will join one of several portfolios.
- You’ll have access to best practices, operational insights, and data from 1,300+ CSI companies.
- Day-to-day decisions remain yours.
What happens to my employees after an acquisition?
- Employees typically keep their roles, with leadership maintaining operational control.
- Your portfolio manager provides guidance on strategy & operational best practices.
- We work with you to determine the best staffing and operational roadmap to support sustainable growth.
Will I still have decision-making power after selling?
Yes. You remain in charge of day-to-day operations.
Will I have to move my team or headquarters?
No. We do not relocate teams or merge companies into a larger corporate structure.
Can I stay involved with the company after selling?
Absolutely. Many founders stay on for years after the acquisition, continuing to grow their businesses while benefiting from CSI’s resources. However, if you’re looking for an exit strategy, we can also structure deals to accommodate that.
What kind of support will my company receive post-acquisition?
You’ll gain access to:
- A network of 1,300+ acquired businesses sharing best practices
- Data-driven insights on optimal operating ratios
- Support for scaling, hiring, and operational improvements
What employee benefits does PYXiS offer?
All CSI companies participate in our employee benefit plans. Due to CSI’s scale, our package is typically as good or better than what most acquired companies previously offered. Full details are available when an acquisition is being seriously discussed.
Why Sell to PYXiS?
What happens if I receive another acquisition offer?
We understand that sellers may receive multiple offers. What makes PYXiS different is that we offer a permanent home for your business, ensuring it continues thriving without the risk of future resale.
Why should I sell if the valuation equates to the profits of running my business for a few more years?
Selling to PYXiS provides:
- De-risking against market fluctuations (guaranteed payout)
- Long-term wealth opportunities (CSI’s employee share plan has historically been value-lucrative)
- Earn-out structure so you can profit from continued revenue growth
- Operational synergies (e.g., HR, legal, tax)
- Best practices & optimal operating ratios from 1,000+ businesses
- Access to capital for product expansion, acquisitions, and more
Have Questions? We Have Answers.
