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Graphisoft to sell Construction Division to management

Hungarian building software company Graphisoft today announced, it signed an agreement on April 30 with VICO Software, a company owned by some of its management, to purchase its Construction Division for an undisclosed price.

Graphisoft said it would continue to cooperate with VICO Software to ensure a smooth transition for clients. It will also continue to work with VICO on product integration. Graphisoft said in February it had reached a preliminary agreement with the segment's management to sell a majority stake in its Construction Division to the segment's management, who were to be backed by venture capital company Borealis Ventures.

The management were to spin off the division into a company in which Graphisoft would still hold a minority stake. CEO Dominic Gallello said at the time Graphisoft’s management believed the segment required an outside investor until the Virtual Construction market becomes more mainstream in big construction companies which could take several more years. The Contruction Solutions Division generated net revenue of €1.756 million in Q1-Q3 2006, more than double that in the same period a year earlier. Operating losses doubled to €3.628 million.

Graphisoft spun off its property activities into a company called Graphisoft Park in 2006. After the spin-off of the Construction Division, Graphisoft is left with only its architectural activities, including its flagship design software ArchiCad. German building software company Nemetschek recently acquired 93.7% of voting rights in Graphisoft after a deal to purchase shares from some of its biggest stakeholders, including chairman and founder Gábor Bojár, followed by a public purchase offer ended in March. (Bg)