Stuttgart, Germany-based RIB Software has been expanding its international footprint in the architecture, engineering and construction Software-as-a-Service space in recent years; Australia’s Projectcentre and Denmark’s Docia were among the group’s early SaaS acquisitions, and it has accelerated its M&A activities in recent years. Now 2,700-strong, it has enjoyed a strong first half of 2020 despite the global economic impacts of the COVID-19 pandemic. Following a strong 2019 (RIB Software grew 57%…), the company has grown revenue 42.6% to €131.9 million (c. £119.3m or US$156.9m) from €92.5m in the first half of 2019. EBITDA more than doubled: up 117% from €21.5 million to €46.7m (c. £42.2m or US$55.5m).
Schneider Electric takeover completed
In February 2020, French multinational Schneider Electric (a specialist in electrical equipment and ‘Internet of Things’ and owner of the UK’s AVEVA software group) made a €1.4bn bid for RIB Software (post). This was commended to shareholders by RIB’s management and the majority of shareholders approved the takeover by the April 2020 deadline. On 10 July 2020, Schneider Electric announced the successful completion of its offer for all outstanding shares in RIB Software. RIB says all closing conditions have been fulfilled in the meantime, including CFIUS approval (received on 2 July 2020).
RIB Software 2020 outlook
RIB’s half-year announcement confirms that, due to COVID-19 uncertainties, the previously acquisitive company has limited its M&A activities (in June 2020, it announced it had bought a controlling stake in a Chinese technology developer, Bochaosoft, a 350-strong China-based electric power and engineering BIM design software company). This slowdown will impact on planned revenue and EBITDA contributions from its deal pipeline. As previously announced, RIB is focusing on expansion of its iMTWO segment, while looking to sell its xYTWO e-commerce business. The company’s guidance for 2020 envisages revenues of between €240 million and €270 million (c. £217-244m or US$285m-321m) – up from 2019’s €214m – and an operating EBITDA of between €55 million and €75 million (c. £50m-68m or US$65m-89m) – compared to 2019’s €51.2m.