EOH subsidiary EOH Mthombo has entered into a share purchase agreement with RIB Limited, a subsidiary of listed German firm RIB Software SE, which will see EOH sell 70% of its shares in Construction Computer Software (CCS) for R444.39 million.
The companies have also entered into an agreement for the sale of the remaining 30% shares in 2022.
CCS is a provider of enterprise software solutions for the construction and engineering industries – the same industries that RIB operates in. RIB operates in almost 30 countries and has over half a million licensees.
“This transaction is a significant milestone in EOH’s strategy to align with key partners which enable the scaling up of unique software businesses identified within the Group’s fold,” said EOH in a statement.
“It is also a crucial step forward for EOH’s IP division and RIB is the right partner to unlock CCS’ full potential, enabling both growth and internationalisation.”
EOH said that the deal would unlock R1 billion in value through various strategic partnerships and targeted disposals in order to reduce the Group’s debt.