Johannesburg - Local technology company EOH [JSE:EOH] has acquired Construction Computer Software (CSS) for an undisclosed amount, the latest in a string of acquisition deals.
In a trade update on Tuesday on the Johannesburg Stock Exchange (JSE), EOH said CSS has a turnover in excess of R200m and a presence in 50 countries that spans South Africa, the Middle East, Europe, Australia and South America with over 15 000 users.
CCS provides integrated niche management solutions for the Construction and Mining industry sectors.
“EOH is a natural home for CCS with an innovative culture, complementary solution set and access to a wider customer base,” said Peter Reynolds, joint MD CCS.
EOH Group CEO Asher Bohbot said: “It’s very exciting to have CCS join the EOH family, they will bring us to new places and markets which are strategic in EOH’s growth plans.”
Details regarding the value of the deal have not been disclosed, but EOH said that “due to its relative size, the acquisition falls below the threshold of a categorised transaction in terms of the Listings Requirements of the JSE Limited and its announcement is therefore voluntary”.
Stock market juggernaut
EOH’s share price has soared from about R44 in February 2013 to just over R126 in 2015 on the back of strong financial performances.
In annual results announcement in September 2014, EOH reported that its revenue increased by 42% to R7.2bn while its profit after tax increased by 49% to R492m.
EOH attributed this growth to a combination of both organic growth and acquisitions.
For example, in August 2013, EOH acquired 100% of the share capital of specialised developer of software products for the financial services industry, Sybrin Ltd and Sybrin Systems (Pty) Ltd, for R283m.