Speculation continues in the financial media regarding high-flying
AVEVA. Last week one London analyst suggested that
AVEVA would use its fast-rising revenue and high stock price to make an acquisition play into mainstream construction technology.
Having known members of the AVEVA leadership team for some time, I thought this latest report rang hollow. Sure enough, when I asked for clarification I got the following reply from AVEVA Finance Director Paul Taylor:
[It is the job of these analysts] to create interest in our company; they need buyers and sellers of shares to make money. They are therefore the creators of news flow and try to second-guess what we may do to stimulate growth in our company. As such sometimes they are right, sometimes wrong. That said we have said nothing directly public about anything other than we remain an acquisitive company and would look to add value through both organic and acquisitive growth in the industries we serve and or ones that are similar in nature, hence the comment on construction. But at this stage we do not have anything to comment on nor close to anything. We will continue however to look for opportunities.
Last year AVEVA CEO Richard Longdon told me they were interested in acquiring, but that too many small companies in this space have an inflated sense of their value. (I can't quote his exact words in a family publication.) As the plant industry continues in a long-term boom, it may continue to be difficult to acquire at what AVEVA would see as good value. At some point AVEVA will either have to pay the price or constrain itself to only grow through internal development. Limiting the company by turning away from acquisition is short-term thinking; AVEVA has always prided itself on working for the long haul, and, I believe, will continue to do so. I also continue to believe the next acquisition or two will be a close fit, not a stretch into new territory. But remember, AVEVA is also in shipbuilding (floating plants, if you will); their next move could extend their reach in that equally-hot market segment.
--RSN