The German Software Developer for Architecture and Construction, Nemetschek, is considering new acquisitions of up to 2.5 billion euros (2.92 billion dollars), its general manager, Yves Padrines, in Reuters.
“With the solidity of our assessment, and a possible capital increase if necessary, we would have the capacity to invest between 2.0 and 2.5 billion euros in acquisitions,” explained Mr. Padrines during an interview.
“We are studying all opportunities in planning and design segments, as well as construction and realization,” he added, adding that the largest acquisitions would concern the latter sector, while more modest operations would be carried out in planning and design.
Nemetschek generates approximately 42 % of its turnover in the United States, but Yves Padrines puts concerns related to Price and Migration policies of President Donald Trump.
“There is no customs duties on software,” he said.
Last July, Nemetschek, a competitor of the American Autodesk group on the Nasdaq, bought the American Gocanvas for around 700 million euros, the biggest acquisition of its history.
This operation still weighs on the group’s margins, but Yves Padrines believes that the trend will be reversed: “Gocanvas will align with our level of margin over the years, so we are targeting Ebitda margin in the 30 % in the coming years,” he said. Last year, it was 30.2 %.
With a market capitalization of 14.6 billion euros, Nemetschek is considered a potential candidate for entering the German reference index.
Yves Padrines anticipates turnover growth of around 15 % per year in the coming years, more than the wider market for construction software, which should progress just below the two figures.
“The construction sector offers immense potential. I once said that only fishing and hunting were less digitized than construction. Meanwhile, digitalization has even progressed in fishing, “he said.
According to him, architects and design offices also remain cautious when it comes to switching to a subscription model for software licenses, a transition that Nemetschek actively encourages.
“This change will take a few more years,” he warned.
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