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Stuttgart, Germany and San Jose, California, 10. December 2018. RIB Software SE (FRA: RIB), the world’s leading provider of enterprise cloud technology based on 5D BIM for the building and construction industries, and Flex Ltd. (NASDAQ: FLEX), the Sketch-to-Scale® solutions provider that designs and builds Intelligent Products for a Connected World®, have agreed on a new ownership structure for their joint venture, YTWO Formative (“YTWO”).
Under the terms of the agreement, RIB will pay Flex approximately US$48 million upon closing, which is expected by the end of December 2018. Additionally, an earn-out can be paid to Flex based on the YTWO platform achieving certain transaction values in the next 36 months. RIB assumes full control of the YTWO joint venture, while continuing to invest in YTWO’s BIM-based catalogue of building materials and to accelerate YTWO’s go-to-market plans. RIB’s acquisition of the YTWO shares reaffirms its conviction that the real estate and housing industries are a key growth area for its cloud-based 5D BIM solution.
The two joint venture partners agreed to the new ownership structure against the backdrop of new global trade policies that have led to a greater regionalization of supply chains. In response to these trends, RIB and Flex decided that RIB assuming sole ownership of YTWO would provide greater strategic and operational agility for sourcing by region, while maintaining a globally unified YTWO software solution.
Flex will continue to support the global real estate and housing industries through a dedicated, global team of internal supply chain and sourcing experts.
RIB and Flex have also signed an agreement for a joint YTWO project in Hungary in which Flex will apply YTWO technology in a housing project for its employees. For the project, the parties have worked together in compiling a BIM-catalogue of advanced, pre-fabricated building materials on the YTWO platform. Construction of the project is expected to be completed at the end of 2019.
Since its foundation in 2016, YTWO has made substantial progress and received validation of its business model from leading real estate developers worldwide. In EMEA and the US, YTWO has achieved significant milestones through its pilot programs and technology partnerships. First orders on the YTWO platform have been received and processed in both regions. In the APAC region, YTWO has also received positive feedback from clients such as MyHome, which recently celebrated the opening of its first precast factory with annual output of up to 25,000 houses; and Country Garden, one of the world’s largest real estate developers, which has been utilizing the YTWO platform in a mega project near Singapore.
As a fully-owned subsidiary of RIB, YTWO will seek new opportunities to strengthen its supplier base and add more branded and high-quality building materials to its catalogues. RIB believes that the new structure of YTWO will enhance its brand positioning and bring more users to the platform with higher product diversity.
“This new structure allows RIB and Flex to focus on their core capabilities as we continue collaborating on services for the real estate and housing industries. RIB is focusing on the development of the IT cloud platform, and Flex is focusing on the supply side. This will reduce connected transaction complexity and make it easier for suppliers and strategic partners to join the platform, creating a solid foundation for continued collaboration and growth,” said Mark Trutna, President, Flex Building Group.
“As the sole owner of YTWO, we will further accelerate the successful deployment of our strategy to generate users for RIB’s iTWO technology. We are excited to pursue the large pipeline of opportunities ahead,” said Tom Wolf, CEO of RIB.
About RIB Group
RIB Software SE is an innovator in construction business. The company creates, develops and offers cutting-edge digital technologies for construction enterprises and projects across various industries worldwide. Its flagship product iTWO 4.0 is the world’s first 5D BIM enterprise cloud solution for construction companies, industrial companies, developers and project owners, etc. Since its inception in 1961, RIB Software SE has been the pioneer in construction innovation, exploring and bringing in new thinking, new working method and new technology to enhance construction productivity, and transforming the construction industry into the most advanced and digitalized industry in the 21st century. RIB is headquartered in Stuttgart, Germany, and listed in Prime Standard Frankfurt Stock Exchange since 2011. With more than 900 talents located in over 30 offices worldwide, RIB is serving 100,000 clients including construction contractors, sub-contractors, developers, owners, investors and governments, in the field of building construction, infrastructure, EPC sector and more.
About Flex Ltd.
Flex (Reg. No. 199002645H) is the Sketch-to-Scale® solutions provider that designs and builds Intelligent Products for a Connected World®. With approximately 200,000 professionals across 30 countries, Flex provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes in various industries and end-markets. For more information, visit flex.com or follow us on Twitter @flexintl. Flex – Live Smarter®