The RIB Group invests into a 250 people leading IT company headquartered in Dubai (United Arab Emirates) and Bangalore (India), called Levtech Ltd. (Levtech Consulting).
With 150 R&D employees in Bangalore, India’s IT headquarters, Levtech develops, maintains and supports the delivery of their own cloud industry solutions for the international Real Estate Industry (Property 365) and Construction Industry (Payroll and Projects 365) as well as asset management software for CAPEX owners (EAM 365) based on Microsoft Dynamics Technology. In addition to software sales and development, Levtech has 95 enterprise consultants to run international digital transformation projects in all English-speaking countries.
Levtech was founded by seven entrepreneurs (3 Investors / 4 Management) and serves today 19,000 USERS from 5 offices in India, Singapore, UAE, Qatar and KSA. The consulting firm is a three-time Microsoft Dynamics Inner Circle awardee and was ranked 12th in the Dubai SME100 program.
RIB has taken over 60% of the shares from Levtech Investors, based on an enterprise value calculated using 8 times EBIT/DA. 40% Management shares will be still owned by the four previous Directors in India and UAE.
3,600 Levtech USERS are already using Cloud and partly MSP services. The company has reached over USD 11 Million revenue and is planning to grow the business within a double-digit margin in 2019.
Even with having invested heavily into the Cloud and switching from on-premise licenses to subscription-based, industry-specific offerings, Levtech reached a 15% average positive EBIT/DA margin p.a. in the past 3 years, not including Microsoft revenue.
Within the RIB & Levtech cooperation, it is planned to integrate Levtech’s Microsoft Dynamics 365 based industry solutions, Property 365, Payroll 365, Projects 365 and EAM 365 with the MTWO platform, and to integrate the modules into the iTWO 4.0 architecture as ready to go cloud ERP industry solutions for the Real Estate and Construction Industries. It is also planned to transfer thousands of Levtech USERS to the MTWO cloud platform and train the 95 Levtech consultants in iTWO 4.0 implementation to support international RIB clients. RIB plans to use the Bangalore R&D center as the third international RIB global R&D delivery and 24/7 support center for iTWO 4.0 with a special focus on U.S. and countries using British building standards and rules.
The target is to enter a high revenue growth phase, to win by 2019/2020 10,000 USERS for MTWO, to achieve a 20-30% EBIT/DA margin in the midterm, and to support the target to increase the regional MTWO USERS to over 200,000 in the midterm.
Anilesh Kumar, CEO of Levtech: “Levtech’s top management shares the vision of Microsoft and RIB to build with MTWO the global No.1 vertical cloud for the building and infrastructure industries. With strong capabilities in business applications and analytics, we are experts in digital transformation technology and consulting and have carefully analyzed the global market before we decided to join the MTWO platform initiative. The synergy between MTWO and Levtech’s industry solutions based on Dynamics 365 will bring the latest in construction and real estate technology to enterprises across the world. We are now proud to be “running together” with the RIB team and delivering one of the globally most advanced cloud/AI based enterprise ERP solution to the Real Estate and Construction Industries.”
Mark Kefford, Chairman of RIB Asia/Pacific: “MTWO is targeting to win 2 Million USERS worldwide in the midterm and is today one of the most advanced cloud-based enterprise solutions in the AEC and EPC Industry. With our Bangalore investment, we will not only get access to an extremely strong management and a fantastic new technology, but also, we get direct access to a market with 5 Million English speaking IT workforce to support the fast-growing demand for iTWO technology and to reach our target to satisfy up to 2 Million MTWO platform USERS in the future. With the UAE we will have a strong team in a region that intends to invest more than USD 1,2 Trillion in buildings and infrastructure in the near future. With our R&D Centers in Guangzhou, China and Bangalore, India, we are positioned in two countries which are standing for almost 40% of the world’s population.”
This investment follows RIB’s previous investments in ICS located in the U.S., A2K headquartered in Australia and SaaSplaza located in the Netherlands 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.