Canada is famous for hockey and maple syrup, but it is also home to some of the world's leading software companies. In fact, it is one of the leading countries for software development, and the software sector accounts for some of the biggest companies in Canada.
Five of the largest Canadian software companies, by market capitalization, include Constellation Software Inc., OpenText Corporation, CGI Inc., Descartes Systems Group Inc., and Kinaxis. Two of these companies, Constellation Software and CGI, are among the 30 largest companies in Canada by market capitalization.
All of these companies have different business profiles and operate on different business models, so comparing them is not apples to apples; however, they are some of the key leaders in their specific sectors under the software umbrella.
- Canada is home to some of the leading software companies in the world.
- Examples include OpenText, Descartes Systems, and Kinaxis.
- While CGI Inc. is more than a software company, it develops cloud-based solutions to share information and data.
- Constellation Software is the biggest in the sector with a market value of almost $30 billion.
- Both Constellation Software and CGI are in the top 30 largest companies in Canada list by market capitalization.
1. Constellation Software Inc.
Constellation Software has a market capitalization of $29 billion and annual revenues of over $2.5 billion in 2019. It operates internationally, offering its market-leading software and services to a number of industries that function in both the public and private sectors. Shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol CSU.
Constellation Software was established in 1995 with a goal to amass a portfolio of growing market software companies that possess the qualities necessary to make them leaders in their particular markets. Through a combination of acquisitions and organic growth, the company has experienced rapid growth and established an arrangement of companies that service a large and diverse customer base. Constellation provides its services to over 30,000 consumers, operating in more than 30 countries worldwide. The company has offices throughout North America, Australia, and Europe. It employs more than 16,000 workers.
2. CGI Inc.
CGI Inc. is a Montreal, Quebec information technology company involved in systems integrations, consulting, and outsourcing. While not strictly a software company, it does provide a number of different products, including secure cloud computing, designed to help with the sharing of information and data. CGI has a market value of $16.4 billion, making it one of the top 30 companies in Canada. The stock is listed on both the New York Stock Exchange (NYSE) and the Toronto Stock Exchange under the ticker GIB. The company had 2019 revenues of $12,111.2 billion.
3. OpenText Corporation
OpenText Corporation, with a market cap of $10.4 billion, is another top Canadian software company. Headquartered in Ontario, the company cultivates and sells enterprise information management (EIM) software solutions to major companies in a large variety of industries. OpenText software applications are used to manage content or unstructured data for many types of governance and monetization requirements for large companies, professional service firms, and government agencies.
OpenText’s ongoing growth is due in large part to its many acquisitions, including Actuate Corporation, Information Graphics Corporation, GXS Inc., and Cordys. OpenText is a publicly-traded company, listed on TSX and on the NASDAQ under ticker OTEX. The firm employs approximately 12,200 people and had revenues of $2 billion in 2019.
Kinaxis is an Ottawa, Ontario-based supply chain management and sales software company. It makes subscription-based products for large, multinational corporations. Nearly 62% of the company's revenue is from software as a service (Saas). Kinaxis was founded in 1984 and employs 500 workers. It has a $3.9 billion market cap, $191 million in revenues for 2019, and shares are traded on the Toronto Stock Exchange under ticker KXS.
5. Descartes Systems Group Inc.
Based in Waterloo, Ontario, Descartes Systems is involved in supply chain management software, logistics software, and cloud-based services. The company almost went bankrupt in 2000 in the wake of the dotcom bubble but has since reemerged as a profitable company. Descartes Systems currently has a market cap of $3.6 billion and 2019 revenues were $196 million. The stock trades on TSX and on the NASDAQ under the ticker symbol DSGX.