AVEVA Group plc one of the world's leading providers of engineering design and information management solutions has acquired 8over8 Limited 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 £10.0 million and profit before tax of £3.1 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 £26.9 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."