Global AEC software leader, Nemetschek SE of Germany, has announced its agreement to acquire RISA Technologies, Inc., for USD 24.9 million in an all-cash deal. For year 2017, RISA anticipates revenues amounting to USD 7.5 million.
US Market Leader in Structural Engineering—Acquired
RISA offers one of the most popular structural engineering software suites in the United States for multi-material structural analysis. In a 2013 survey, RISA-3D was the most widely used software by engineers in the United States. With 10,000 users, RISA has leading market share and is a key software provider to top engineering design firms in the United States.
Key Takeaway
Nemetschek SE has been making smart acquisitions oriented at capturing US-based AEC software market share and this is another prime example much like their acquisition of Bluebeam. From what we have heard, there seems to be a particular emphasis on structural engineering tools. Interestingly, there is no mention of Open BIM in this announcement but that doesn’t mean RISA solutions won’t fit ideal Open BIM workflows in the future.
RISA was acquired by the Nemetschek Group as part of Nemetschek’s worldwide structural engineering software strategy. Nemetschek already has a leading market position in the European structural analysis and design market via its brand SCIA. With the acquisition of RISA, Nemetschek further establishes its commitment to delivering complete engineering workflows in the US market.
The Group has officially stated in its press release that this acquisition of RISA will “increase awareness” of the Nemetschek Group in the structural engineering market in the United States. “RISA is perfectly complementing our existing solution portfolio for the AEC industry. The acquisition of RISA, in combination with the strong position of SCIA in Europe, allows us to take a leap forward in significantly strengthening our market share in the worldwide structural market”, says Patrik Heider, Spokesman and CFOO of the Nemetschek Group.
“The acquisition is a great fit for both companies,” says Bruce Bates, founder and current CEO of RISA. Bruce will be retiring shortly after passing the CEO role to Amber Freund, current COO, who joined RISA in 2005. “I am excited to join the Nemetschek Group and the opportunities it provides to both our customers and our company. We look forward to collaborating with other Nemetschek brands to provide a comprehensive set of design tools for structural engineers,” says Amber Freund.
Financial Statement
RISA has 24 employees. For the year 2017, RISA anticipates revenues amounting to around USD 7.5 million and an operating margin (EBITDA margin) in the range of the Nemetschek Group average. The purchase price amounts to about USD 24.9 million (cash-/debt-free). The financing of the purchase price is provided mainly by the company’s own capital resources and by the use of credit lines. The acquisition occurs via a subsidiary of the Nemetschek SE and is expected to be closed in October 2017.