Why Consider a Carve-Out?

Unlocks Capital and Resources

Carving out non-core businesses can be extremely favorable for sellers. A key benefit of a carve-out is that it frees resources that can be reallocated to strategic objectives more tightly aligned with your core operations. Whether that means investing in organic growth initiatives, making new acquisitions, or paying down debt; carving out non-core businesses can provide valuable resources needed to execute on your primary strategy.

Segment Underperformance

Sometimes overall business performance can be significantly impacted by an underperforming segment. Maintaining these assets often adds cost pressure to a company and requires significant time, energy, and attention from management. By divesting underperforming assets, sellers can free up management’s time to focus on the company’s largest opportunities.

Reduce Exposure

Companies may reduce overall exposure to certain geographies, verticals, or product categories through strategic carve-outs. Change in the regulatory and economic environment can often impact the risk profile of assets and be a catalyst for divestitures.

Our Carve-Outs 

Jonas Fitness

Acquisition Date: 2013

Functionality: Jonas Fitness’ premier software solution, Compete, equips fitness clubs and health centers with the tools to efficiently manage all aspects of their operations while focusing on delivering exceptional member experiences. From membership management and class scheduling to automated billing and detailed reporting, Compete offers a comprehensive, all-in-one platform designed to streamline daily tasks. Its adaptability allows clubs to customize workflows, scale operations as they grow, and automate routine processes, freeing up time to focus on enhancing member engagement.

Why Carve Out: The previous owners acquired the business as part of a larger acquisition. It was never their intention to enter the Fitness, Sport, and Leisure vertical with this acquisition. As such, they wanted to divest the club management component that was misaligned with the company’s overall strategic direction.

Why Jonas: This carve-out opportunity carried more significant risk and required high effort from a buyer as the business was deeply integrated with the parent company on several fronts. Nuances of the transaction included rebranding the business unit to be a standalone company, establishing a new leadership team, and transitioning offshore workforces to new providers. The acquirer would also be required to overhaul complex and high-risk IT infrastructure, such as migrating customer data from the former owner to third-party data centres and securing payment processing agreements. Jonas emerged as the successful buyer because the former owners had confidence in our scale and expertise to navigate the highly complex scope of the deal while delivering a satisfactory outcome for everyone involved.

Why Sell to Jonas?

Jonas Software is a buy-and-hold acquirer of mission-critical software businesses. We have a proven track record of successfully acquiring and integrating software businesses into our portfolio. Our financial backing and expertise in identifying value in software assets positions Jonas as the top buyer in the industry. Here are three key reasons to sell software assets to Jonas.

Speed and Transaction Security

Jonas Software, an operating group under Constellation Software (TSX: CSU), has acquired 175+ software businesses and carve-outs over two decades. Jonas has the experience and strong financial backing to close acquisitions quickly and easily.

Permanent Home for Your Asset

We buy-and-hold businesses forever. We have never sold a business and never will – this includes carve-outs. Sellers can assure their customers that they will continue to receive the service they want and promise employees that they have a safe home with Jonas.

History of Success

Jonas developed a playbook for best business practices that is followed by all 175+ companies. These software companies and carve-out assets, continue to grow and scale as independent units.

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