Ricardo sells its software division
Ricardo plc, a global strategic, environmental and engineering consultancy, today announces that it has completed the sale of the Ricardo Software business unit comprising shares in the UK, US and Czech companies of Ricardo Software as well as related assets (“Ricardo Software”). to FOG Software Group, a division of Constellation Software Inc (CSI).
This disposal is part of Ricardo’s refined strategy to optimize its portfolio by repositioning itself for long-term and sustainable growth in environmental and energy transition solutions. Proceeds will be reinvested in opportunities that offer attractive growth, while allowing Ricardo Software’s business to grow under different owners.
Ricardo Software is a trusted technology partner to the world’s leading transportation OEMs and Tier 1 suppliers, providing a comprehensive suite of automotive simulation design tools for propulsion and transmission design solutions. It is in this context that Ricardo considers FOG Software Group to be ideally placed for Ricardo Software’s next stage of growth, given its STEM business portfolio, which includes CFD, visualization and software companies. analysis, and its philosophy of creating and growing the market. leading software companies. As part of the transaction, Ricardo will continue to have access to software licenses from FOG Software Group, ensuring continuity of service to its automotive and industrial customers.
The maximum cash consideration receivable is $20.5m (£16.8m). Ricardo will receive cash of $17.5m (£14.3m) on completion and this could increase by a further $3.0m (£2.4m) depending on the achievement by Ricardo Software of certain revenue targets during the 12-month period following completion. The figures above include adjustments for cash and net working capital.
Ricardo Software generated revenue of £9.3 million (unaudited) and underlying operating profit of £1.8 million (unaudited) for its financial year ended June 30, 2022 , with gross assets as of June 30, 2022 of £11.2 million (unaudited). During the financial year ended June 30, 2021, Ricardo Software generated revenue of £10.3 million (unaudited) and underlying operating profit of £2.3 million (unaudited) on a comparable basis, after adjusting for the impact of intercompany transactions with the rest of the Ricardo Group. Gross assets amounted to £7.5 million (unaudited) as of June 30, 2021. As part of the divestiture, management of Ricardo Software will transfer with the business and will lead ongoing activities within the FOG’s STEM portfolio.
Graham Ritchie, CEO of Ricardo plc, said: “The sale demonstrates further progress in optimizing Ricardo’s portfolio. This, combined with our acquisition of Inside Infrastructure earlier this year, presents positive momentum towards our ambition to become a leading strategic consulting and engineering firm for environmental and energy transition solutions.
Natasha Perfect, Ricardo [email protected]
Elisabeth Cowell, Sec Newgate [email protected]