Aconex Limited (ASX:ACX), provider of a cloud collaboration platform for the global construction industry, today announced a multi-year strategic partnership with CIMIC Group Limited (ASX:CIM) and certain of its related entities. CIMC, formerly known as Leighton Holdings Limited, is the parent company of one of the world’s largest international contractors.
Founded in 2000, Aconex has 41 offices in 22 countries around the world, including headquarters in Melbourne and San Francisco. The company provides a cloud collaboration platform for the global construction industry. The platform gives owners and contractors in the construction, infrastructure, and energy and resources sectors project-wide visibility and control between many different organisations collaborating across their projects.
Under the terms of the agreement with CIMIC, Aconex will provide cloud collaboration services and acquire intellectual property, assets and certain customer relationships of INCITE Keystone, a global project collaboration platform owned and operated by CIMIC.
Aconex anticipates that the partnership will generate a minimum of A$16.5 million of committed revenue for the base management of existing and new projects over the next four years.
Aconex will pay CIMC approximately A$6.4 million in cash for the acquisition of INCITE Keystone intellectual property and assets, as well as the transfer of certain customer relationships and employees to Aconex.
Aconex CEO, Leigh Jasper, commented “Our global position as an industry leader is significantly strengthened by this partnership with CIMIC. We’re enhancing the Aconex platform with infrastructure process technology and functionality from INCITE Keystone and adding an experienced team that has successfully served hundreds of large, complex infrastructure projects around the world.”
Both Aconex and CIMIC’s share prices have experienced healthy growth over the last twelve months. Aconex has continually outperformed forecasts and recently secured several lucrative agreements. CIMIC has recorded equally promising financial results and continues to grow its contract pipeline. Following the announcement this morning Aconex has gained over 10 per cent and CIMIC remains relatively unchanged as of 11.00 AEST.
Author: Ben Visser
Aug 05, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.