Constellation Announces Update in Relation to a Previously Disclosed Customer
TORONTO, ONTARIO -- (Marketwired) -- 07/22/13 -- 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.
Constellation Software Inc.
Chief Financial Officer
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