RIB acquires 70% of CCS in Johannesburg (South Africa)
Stuttgart, Germany, 02 July 2019. RIB Software SE, the world’s leading provider of iTWO 4.0 Cloud Enterprise Platform Technology for the construction and real estate industries, today announced the successful signing of the 70% acquisition of CCS in South Africa. The purchase price amounts to 31.5 Million USD, based on an 8.5 EBIT/DA multiple.
CCS was founded in 1982 and is generating 13.6 Million+ USD ARR revenue (more than 18 Million USD revenue in total forecasted for 2019) with high profitable EBIT/DA margin of ~30% in a high potential and fast-growing market. 160 highly professional vertical construction software experts are working mainly out of the Group HQs in Johannesburg and Cape Town. 50% of the company’s revenue comes out of Africa and around 30% out of Middle East. Other important markets include the U.K., Portugal, India, Australia and New Zealand.
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.
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.
“We are 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 & engineering industry. We look forward to the exciting journey of “Running Together” with RIB, as we continue to develop and scale CCS.” Andrew Skudder, CCS CEO.
“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. 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.” Tom Wolf, CEO of RIB Group.
Since 1982, CCS has provided specialised software solutions to the construction & engineering industry. It today serves more than 40,000 Users in over 50 countries, including many of the world’s largest construction & engineering companies. CCS adds value to every stage of the project lifecycle in delivery of the built environment. We do this from the first estimate to the final account, though our estimating, project control, cost and enterprise management software suite of Candy and BuildSmart. These two products work seamlessly together providing a unique complete cost and enterprise management solution to the construction and engineering industry. www.ccssa.com
About RIB Group
RIB Software SE is an innovator in the building and construction industry. The company develops and offers cutting-edge digital technologies for construction enterprises and projects across various industries worldwide. iTWO 4.0, RIB’s flagship cloud-based platform, provides the world’s first enterprise cloud technology based on 5D BIM with AI integration for construction companies, industrial companies, developers and project owners, etc. With over 50 years of experience in the construction industry, RIB Software SE focuses on IT and engineering and becomes the pioneer in construction innovation, exploring and bringing in new thinking, new working methods and new technologies to enhance construction productivity. RIB is headquartered in Stuttgart, Germany and Hong Kong, China, and listed on the prime standard Frankfurt Stock Exchange since 2011. With over 2,700 talents in more than 25 countries worldwide, RIB is targeting to transform the construction industry into the most advanced and digitalized industry in the 21st century.