SaaSplaza announces acquisition by RIB Software and strengthens its Microsoft Cloud strategy
November 6, 2018 - RIB Software SE, the world's leading provider of iTWO 5D BIM Cloud enterprise platform technology for the building, construction and real estate industries, today announced the successful conclusion of the third MTWO MSP (Managed Service Provider) partnership and investment agreement with SaaSplaza, the world's leading cloud provider of Microsoft Azure and Dynamics Services with offices around the world and customers in 80 countries. This investment follows RIB's previous investment in ICS located in the U.S. and A2K headquartered in Australia and continues the MTWO initiative with Microsoft following the capital increase in the first half of 2018 to build up the world's first vertical cloud for the construction and real estate industries, which account for USD 10 trillion in global expenditure, or 14% of global GDP in 2017, and expected to grow to USD 14 trillion by 2025 according to a McKinsey Global Institute report.
SaaSplaza has over 300 partners, both VARs and ISVs across Dynamics and general software solutions. Since 2008, the company has successfully established Global Cloud Services businesses in the Microsoft regions across Europe, South-East Asia, China, Pacific, Canada, USA and LATAM and currently has offices in Amsterdam, Munich, Toronto, San Diego, Shanghai, Singapore and Sydney. SaaSplaza is projecting a positive EBIT/DA result of EUR 1.5 million in 2018 due to a strong growth in Managed Azure Services for software companies and enterprise businesses.
Under the terms of the agreement, RIB will invest a total of EUR 13.5 million to acquire 100% of SaaSplaza shares based on an EV to 2018 EBIT/DA multiple of 9x. For SaaSplaza, this acquisition reinforces its strategy to be a global leader for Microsoft Cloud Services, and the combination with RIB strengthens its position as a Global Cloud Partner, which will benefit SaaSplaza's partners and customers in various ways. RIB will leverage SaaSplaza's global footprint to build an extensive team focused on delivering MTWO to its existing and new customer base. This investment represents an efficient approach for RIB to accelerate MTWO, as SaaSplaza has a high level of expertise as a Managed Service Provider for Microsoft Azure and Dynamics 365. SaaSplaza has the longstanding capability to provide MTWO users with automated services such as Performance Monitoring, Security & Data Recovery, 24/7 Follow the Sun Support, Incident Handling, Environment Maintenance, iTWO instance Update, Data Migration and Analysis with Reports, and Continuous Improvements. Together, RIB and SaaSplaza are targeting to achieve 10,000 MTWO users by 2020 in a short-term manner and 100,000 MTWO users in the mid-term.
In April 2018, RIB and Microsoft announced MTWO - the world's first vertical cloud platform for the construction and real estate industries. This partnership aims to help companies in the industry achieve productivity gains through digital transformation. To accelerate the international adoption of MTWO technology, RIB has decided to build a global MSP partner network and leverage Microsoft's partner communities to attract 100,000 users by 2020 and up to 2 million users in the mid-term. With SaaSplaza, RIB has signed a total of three strategic investment and partnership agreements with three companies in the regions of USA, ANZ, and Europe, successfully meeting the MSP targets for 2018.
Tom Wolf, Chairman and CEO of RIB, comments, "The RIB investment in SaaSplaza is another exciting development in our drive to build the largest vertical cloud over the Microsoft MSP network with MTWO. Our SaaSplaza deal in November follows our A2K deal in September and our ICS deal in August and will now provide us with comprehensive access to SaaSplaza's worldwide cloud expertise and services. RIB will continue to implement our Cloud and GTM strategy during 2018-2020 and integrate MSP partners in other regions of the world. We are moving forward to offer the MTWO platform to other construction and real estate companies and to provide the access of our iTWO technology to at least 80% of the global market. We believe that MTWO, the world's first vertical cloud platform for the construction and real estate industries, is the right option for our target customers."
"RIB's investment in SaaSplaza proves our excellent position in the field of Managed Cloud Services. Our experts make Cloud Technology work and provide customers with enterprise-grade cloud solutions for business-critical applications on the Microsoft Cloud. Firstly, this partnership strengthens our power to execute on our strategy for our existing partners and customers. Furthermore, we are excited, together with RIB, to revolutionize the construction industry through the distribution and support of MTWO technology on the Microsoft Cloud", says Berend-Jan van Maanen, CEO of SaaSplaza.
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