Irish internet-based construction and property software solutions firm BuildOnline has merged its German operations with the MyBau software business of German construction firms Bilfinger Berger and Strabag. Under the deal, these firms have paid €4 million for undisclosed stakes in parent BuildOnline and have guaranteed revenue of about €4 million for the German online operation over the next two years.

Chief executive, Mr Mark Suster, declined to disclose the size of the Bilfinger and Strabag stakes, describing it as a minority shareholding stake which was not significant.

BuildOnline, which Mr Suster said was on target to move into profit within 12 months, expects the merged German internet operation to produce revenue of about €8 million over the next two years. About 50 per cent of the expected revenue will come from contracts with Bilfinger and Strabag, with the balance from guaranteed contracts with existing Austrian and German MyBau customers.

BuildOnline's German operations are profitable, while MyBau was loss-making, but the combined operation "is already profitable" he said. Mr Suster said the deal was "an important sign that large construction firms are stepping up their investment in B2B software and are committed to deepening levels of collaboration".