UK-based software developer Aveva Group may spend up to $430m to acquire a company that will cross-sell its applications in the construction industry, Bloomberg has reported.
Richard Longdon, chief executive at Aveva said that the target would already be a profitable business. However, he did not give further details. He added that the company may fund the acquisition with cash and debt, or sell shares to raise money.
Due to the rising oil prices, its customers such as Exxon Mobil and British Petroleum have raised production, resulting in an increase in the sales of Aveva’s software to design and manage plants, offshore drilling platforms and tankers. Aveva also plans to spend $113m in cash that it had at the end of September to expand its range of applications.
The company recently opened offices in Shanghai and plans to open a third China office in Beijing next month. Mr Longdon also disclosed that the company has signed a $3m contract licensing its ship-design software to Sinopacific Shipbuilding Group.
This acquisition would be the company’s first in more than two years. In May 2005, Aveva acquired RealityWave, along with its VizStream platform for 3D models, 2D drawings and associated information, for $5.8m.
Source: ComputerWire daily updates