Delta Partners Advises EOH on Significant Asset Disposal to RIB Software
Delta Partners Corporate Finance Limited, which is part of Delta Partners group, has acted as financial advisor to EOH Mthombo (Pty) Ltd. on the disposal of assets to RIB Software SE.
EOH will sell a 70% interest in its South African Construction Computer Software (Pty) Ltd. subsidiary (CCS) for ZAR 444.39 million with a further reciprocal put/call option for the remaining 30% of the business, which may be exercised at the same multiple of 8.5x EBITDA, following release of the December 2022 financials.
The transaction is a significant milestone in EOH’s strategy to align with key partners which enable the scaling up of its unique software businesses. It is a crucial step forward for EOH’s IP division and RIB is the right partner to unlock CCS’s full potential, enabling future growth globally. The transaction is in line with EOH’s plan to unlock ZAR 1 billion through strategic partnerships and targeted disposals to help reduce the group’s debt, as announced in EOH’s interim results.
“We are pleased to have been able to provide strategic and transactional support to EOH in such a landmark transaction. This transaction reaffirms EOH’s dedication to restructuring its business, reducing debt and aligning with key strategic partners. RIB is a global leader in the provision of construction and engineering focused software and, through its platform strategy, can help unlock CCS’ global potential,” said Fede Membrillera, Senior Partner of Delta Partners’ Corporate Finance Business.
CCS is a leading provider of cost and enterprise management software solutions to the construction and engineering industry. CCS’s solutions suite equips its clients with unique project estimation, controls and project management capability enabling improved project schedule and cost management and overall enhanced enterprise management. Their flagship products are Candy, a construction management software designed for the estimation and control of projects and BuildSmart, a fully integrated enterprise management system.
“This transaction marks a significant milestone in EOH’s strategy announced in our interim results. We are pleased to have in RIB the right strategic partner which will help us unlock CCS’ full growth potential. Delta Partners’ strategic and transactional support has been integral to having a competitive process and helping us sign in this transaction,” said Stephen van Coller, CEO and Executive Director at EOH Group.
RIB is an innovator in the building and construction industry with cutting edge digital technologies for construction enterprises and projects across the world. RIB’s flagship cloud-based platform, iTWO 4.0, provides the world’s first enterprise cloud technology based on 5D BIM with AI integration for construction companies, industrial companies, developers and project owners.
With the investment in CCS and through the EOH partnership in Africa, RIB will provide comprehensive solutions to its clients in Africa as it does in its other markets including Australia, German-speaking and Spanish-speaking markets.
Delta Partners is the leading Advisory and Investment firm specialized in TMT with offices in the US, Asia, the Middle East, Africa and Europe. We partner with global and regional telecom providers, digital players, other TMT clients and our investors to help them address their most challenging strategic issues.
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