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  5. CSU: With most software companies in a bear market, assuming AI is not really going to destroy all software companies, doesn't make this environment good for acquiring software companies (while valuatio... [Constellation Software Inc.]
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Q: With most software companies in a bear market, assuming AI is not really going to destroy all software companies, doesn't make this environment good for acquiring software companies (while valuations are lower)? Does the market believe that the AI companies (Open AI, Google, Anthropic, Perplexity etc.) will replace all enterprise companies? I really don't understand what is happening right now to CSU, LMN and TOI. It seems very irrational. Your thoughts?
Asked by Joe on January 19, 2026
5i Research Answer:

We agree it does not make much sense. Fundamentals have yet to be impacted. AI could create opportunities as well for legacy software companies. But for now fear is driving the bus. We agree that if this group of companies picked up the pace of acquisitions it would be helpful. Prices are likely more attractive across the board. It is important to let investors know that they will not be standing still, and will take an active approach to the AI opportunity as well as potential threat. 

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