AVEVA Group PLC Acquisition (2549B)
January 05 2015 - 4:00AM
UK Regulatory
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RNS Number : 2549B
AVEVA Group PLC
05 January 2015
AVEVA Group plc
Acquisition of 8over8 Limited
AVEVA Group plc ("AVEVA" or the "Group"; stock code: AVV), one
of the world's leading providers of engineering design and
information management solutions, announces that it has acquired
8over8 Limited ("8over8") from management and certain private
individuals.
8over8 is a software business, headquartered in Northern Ireland
with operations in North America, Middle East and Australia,
providing contract risk management software to the Oil & Gas,
Mining and other infrastructure industries. 8over8 recorded revenue
of GBP10.0 million and profit before tax of GBP3.1 million for the
year ended 31 December 2013 and is expected to deliver continued
growth in the year to 31 December 2014.
The consideration of GBP26.9 million has been funded through
AVEVA's existing cash resources. In addition to the consideration,
a bonus and incentive arrangement has been put in place to secure
the ongoing commitment of key management, vesting of which is
dependent upon the financial performance of the business over the
next 3 years and subject to their continuing employment. The
acquisition is expected to be earnings enhancing in the first full
financial year of trading.
This acquisition provides AVEVA with the platform to address its
customers' requirements for increased project control, capital
discipline,minimisingproject overruns and delivering improved
efficiency in operations by linking back contractual documents to
key deliverables on the project to track progress and
completion.
8over8's flagship product is ProCon - a risk management software
platform that connects Owner Operators (OO) and Engineering
Procurement Construction (EPC) companies throughout the project
life cycle.
ProCon is used by some of the largest companies in the Oil &
Gas, Mining, and Construction sectors globally and can be deployed
on premise, or via a privately managed cloud, providing real-time
risk management for major capital projects. Trusted to manage
contract execution in multi-billion dollar capital projects, ProCon
is firmly established in the largest capital-intensive energy
projects in the world.
Richard Longdon, Chief Executive of AVEVA, commented: "Now more
than ever before, our customers are seeking improved project
control and reduced risk to their capital investment
programmes.
We are responding to the needs of all the industries we serve to
help our OO customers maximise their return on capital investment,
and our EPC customers to drive greater efficiency, enhancing their
profitability and competitive differentiation whilst providing a
well-established global platform to accelerate the roll-out of
ProCon.
By acquiring 8over8, AVEVA is uniquely placed to ensure both
technical and contractual integrity changes are captured during the
project life cycle and provides further proof of AVEVA's ongoing
strategy to grow its business both organically and through
acquisition."
Enquiries:
AVEVA Group plc Tel: 01223 556611 or
Richard Longdon, Chief 01223 556683
Executive
James Kidd, Chief Financial
Officer
Derek Brown, Head of
Investor Relations
----------------------------- ---------------------
Hudson Sandler Tel: 020 7796 4133
Andrew Hayes / Wendy
Baker / Alex Brennan
----------------------------- ---------------------
Note: Nothing in this announcement is intended to be a profit
forecast or a profit estimate for any period or a forecast of
future profits and statements relating to earnings accretion or
enhancement should not be interpreted to mean that earnings per
AVEVA ordinary share for the current or future financial periods
will necessarily match or exceed its historical published earnings
per share .
This information is provided by RNS
The company news service from the London Stock Exchange
END
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