New majority stakeholder says 40,000 CCS community can readily be converted onto its cloud platform
RIB Software SE, the world’s leading provider of iTWO 4.0 Cloud Enterprise Platform Technology for the construction and real estate industries, has made a 70% acquisition of construction technology solutions provider CCS.
In a statement, the German company confirmed that the total purchase price amounts to 31.5 Million USD, based on an 8.5 EBIT/DA multiple.
CCS was founded in 1982 and today generates $13.6 Million with $18 Million forecasted for 2019.
“CCS’s cost estimation and project control software, Candy, is today already the No.1 in Africa, and with BuildSmart, CCS has developed a complete construction solution similar to an iTWO 4.0 concept for the African, Middle East and other select markets. We believe that the 40,000+ CCS USER community can readily be converted onto the MTWO Cloud. Together with CCS we also plan to develop the MSP Business in Africa,” explained RIB.
CCS predominantly employs 160 ‘highly professional’ vertical construction software experts at its group HQs in Johannesburg and Cape Town. Turnover at the firm is dominated by the African market which accounts for 50% of revenue but it is a major player in the Middle East market which accounts for a further 30% of its income.
It also has a major presence in other markets, including the UK, Portugal, India, Australia and New Zealand.
According to RIB, Africa is undertaking an economic, socio-political and technology transformation and will grow to a 2.5 Billion population or will reach 25% of the world’s population in 25 years.
“The Generation Z (Gen Z) stands today (people under 20 years) for 50% of the African population. This Gen Z will be around 30-35 years old in average at this time. Africa is the future and one of the top future markets like India, China and has the potential to even surpass markets like EU. RIB wants to support Africa to develop cities and infrastructure for the Gen Z. With the investment in CCS and through the partnership with the leading IT-Services provider in Africa, the EOH Group, we will provide comprehensive solutions to our clients in Africa like we do in Australia and other markets like German speaking or Spanish speaking markets,” explained its statement.
Andew Skudder, CEO, CCS described his company as, “very proud to be partnering with an industry leader like RIB which will bring a wealth of opportunity to CCS, our Clients and our team. We are particularly excited by RIB’s ambitious growth strategy and leadership in building the first construction industry cloud platform, that we believe will provide significant value to our Clients. The investment by RIB in CCS affirms our leading market position as a provider of cost and enterprise management solutions to the construction and engineering.”
“The investment in CCS can be seen as one of the most important milestones in the globalization process of RIB Software SE and to defend the global market leadership for our iTWO 4.0 and MTWO platform technology,” said Tom Wolf, CEO of RIB Group. “RIB’s target is to be the international market leader for BIM digital transformation in the building and infrastructure (AEC) vertical in America, Asia, Europe, Africa and Australia.”