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Schneider Electric to Launch Offer for Construction Software Provider, RIB Software

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Schneider Electric to Launch Offer for Construction Software Provider, RIB Software

February 15
09:04 2020

Schneider Electric announces its intention to launch a voluntary public tender offer for RIB Software SE (RIB). 

Schneider Electric believes that the buildings of the future will be All-Digital and All-Electric.  These Smart Buildings will deliver greater efficiency and sustainability by leveraging real-time digital analytics for more optimum performance across the building lifecycle.  With about 40% of worldwide carbon emissions being contributed by buildings per Schneider Electric estimates, there is an urgent need to address this issue globally. 

With the proposed transaction, Schneider Electric will help to enhance its capabilities in the Build/Construction phase, which currently can suffer from a higher level of inefficiency due to low adoption of digital technologies (less than 5% per Schneider Electric estimates).  

Smart Manufacturing

RIB offers a software platform for planning, costing and real-time construction monitoring, placing it as one of the major players in the broader field of Building Information Modelling (BIM), a fast-growing market.  BIM is a digital building information model that helps to improve efficiency and reduce cost in the construction industry.  RIB focuses on construction software while leveraging many of the commonly used design tools and platforms. 

With iTWO 4.0, RIB has developed enterprise cloud technology with artificial intelligence integration.  The platform is positioned between the 3D design phase and the transactional ERP flows to bring additional efficiency in the construction phase. 

Headquartered in Stuttgart, Germany, RIB was founded in 1961 and is listed on the Frankfurt Stock Exchange.  With a global presence in over 50 locations, the ~2,700 RIB employees are serving over 100,000 customers and 500,000 users, with revenue of €214m and EBITDA margin of 23.4% in 2019.

Rationale for the Transaction

  • Buildings and Data centers represent key end-markets for Schneider Electric at about 50% of 2018 group revenue. These markets are closing in on further digital adoption to drive greater efficiency and sustainability. RIB is complementing Schneider Electric’s existing capabilities to respond to customers’ evolving needs in this transformation
  • RIB’s offering will enhance Schneider Electric’s EcoStruxure suite that is dedicated to software, digital services, apps and analytics 
  • RIB and Schneider Electric address a similar ecosystem of partners and customers in the construction market, including contractors, building owners and operators.  RIB will help Schneider Electric drive earlier customer engagement at the C-Suite level for digital solutions to help enable greater efficiency and sustainability
  • RIB should help to grow Schneider Electric’s share of software and service revenues, which should increase its recurring revenue stream and customer intimacy
  • This transaction better positions Schneider Electric for the future All-Digital and All-Electric building world and should bring additional benefits for its customers

What Schneider Electric brings to RIB

  • Provides RIB with a strategic long-term shareholder to help accelerate its expansion
  • Opens a large international sales network to RIB
  • Offers domain expertise in building efficiency and sustainability
  • Brings more extensive customer relationships within the construction eco-system (specifiers, general and specialized contractors, system integrators and building owners)

About Schneider Electric

Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment.

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