RTR3GAY6
IN PHOTO: A women holds her laptop as she walks in front of a cloud computing logo at the booth of IBM during preparations for the CeBIT trade fair in Hanover, March 9, 2014. The world's biggest computer and software fair will be open to the public from March 10 to 14. REUTERS/Fabrizio Bensch

Aconex Limited (ASX: ACX), provider of a leading cloud collaboration platform for the global construction industry announced an agreement to acquire Worksite, provider of a Software-as-a-Service (SaaS)-based integrated project cost management solution from ARES Project Management LLC.

The acquisition is valued at approximately AU$6.5 million and expected to be finalised by the end of July this year.

In Black And White

According to the terms of the acquisition agreement, which was announced earlier on Thursday, Aconex would buy the intellectual property and assets of Worksite for initial cash deal of worth AU$3.0 million. Worksite will also be eligible to receive up to AU$3.5 million in cash and Aconex shares in FY17; however, it is subject to certain performance conditions for the business.

Aconex, a company with a reasonable global presence, plans to assimilate Worksite's solution with its project-wide collaboration platform, offering customers an integrated cost management across the project lifecycle, including earned value management, budgeting, cost performance, and forecasting. The acquisition will not only support Aconex's vision to expand its product functionality and global presence, but also accelerate its entry into the collaborative cost management market.

The integration of cost management enables participants across the board to collaborate around a secure, centralised view of project budget and costs.

The Road Ahead

In line with the collaboration with Worksite, Aconex plans to increase its budget for research and development. Meanwhileits plan to build an integrated cost management solution means the acquisition is expected to be moderately dilutive to earnings before interest, taxes, depreciation, and amortization (EBITDA) and net profit after tax (NPAT) for the next 24 months, before becoming accretive in subsequent years.

"Connecting cost management to the Aconex platform will bridge internal cost systems and external collaboration, providing a single source of truth for better financial visibility and control," said Aconex CEO Leigh Jasper.

Follow the complete press release here.

Contact the writer on barsha23@gmail.com.

RELATED STORIES