Aconex and CONJECT potent combination
Aconex (ASX:ACX) was up during the March quarter, driven by a strong interim earnings result and the acquisition of CONJECT, the leading cloud construction collaboration service provider in Europe. The company’s interim operational result was above market expectations with revenue, EBITDA and NPAT all well above the company’s upgraded forecasts. Pleasingly, the cash flow was also solid, placing ACX in an excellent position to make strategically sensible acquisitions which is what management delivered with CONJECT. German-based, CONJECT, is the leading provider by revenue in Europe and is a market leader in the key German, UK, French and Russian markets. We believe Aconex and CONJECT will be a potent combination of the number one and two players in the European and Middle Eastern (EMEA) markets and will make it very difficult for competitors to develop scale. Aconex will look to migrate CONJECT’s 670-plus customers onto the Aconex platform over the next three to five years, which will deliver cost synergies for the company. The deal ought to be highly earnings per share accretive for ACX shareholders.
Robert was appointed Head of Investments in 2009 and has been a Portfolio Manager since joining OC Funds Management in 2001. Robert is also an Executive Director of parent company, Copia Investment Partners.