Q: High level and subjective question about CSU. They historically bought mature slow growth SASS businesses with very little organic growth. Now the market perceives a risk that AI will disrupt their businesses. CSU will need to innovate rapidly to meet this challenge, BUT, CSU does not have a culture of innovation. Do you think CSU can rapidly become innovative at scale when that is so far from their core competency? Do they have the DNA to innovate AI into their businesses?
Thanks.
Thanks.
5i Research Answer:
We think they do; while at the corporate level the strategy has been to buy cash flow, at the subsidiary level the various subsidiaries are much closer to their customers and are aware of what they need and how AI can help them achieve these goals. The autonomous nature of leaving the subsidiaries generally alone will of course mean that some will adapt better than others. But we think a smart, customer-focused executive team will certainly have the ability to adapt and implement changes to help enhance its customer base and retention levels.