Lumine Group: Growth Overshadowed By Valuation Premium And Controlled Structure

Summary

• Lumine Group grows through M&A across BSS, Content & Media, Network Applications, and OSS.
• LMGIF was spun out from CSU and continues its buy-and-hold strategy of acquiring smaller telecom and media software companies.
• Recent purchases include Motive from Nokia and Axyom.Core from Casa Systems. These have fueled the Company's impressive 34% YoY revenue in 2024.
• This is overshadowed by LMGIF's significantly higher valuation multiples relative to sector peers and even CSU itself.
• CSU also maintains permanent control through a single super-voting share. Hence, I feel Lumine Group isn't compelling enough at these levels.

Lumine Group Inc. (OTCPK:LMGIF) was spun out of Constellation Software (CSU:CA) back in February 2023 through a 63.5 million-share dividend-in-kind. However, interestingly, LMGIF operates very similarly to CSU, with the same "buy-and-hold forever" philosophy in its rollup strategy. You see, LMGIF also consolidates vendors across

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.