Shares of Aconex Ltd (ASX: ACX) have continued their dominant run over the last month, climbing a little over 21% to $6.25 today.
It has also been one of the ASX's hottest shares over the last year, more than tripling in price, while they have gained almost 230% since their ASX debut in December 2014.
Unfamiliar to many investors, Aconex is a business that provides construction collaboration software via its Software-as-a-Service (SaaS) subscription platform.
Basically, it enables organisations around the world to collaborate across the lifecycle of construction projects, facilitating and enhancing tasks such as document management, workflows, field management and asset hand-over.
The company is growing quickly and offers solid margins which should improve as it continues to expand its client-base. It has also recently completed its acquisition of the Europe-based Conject Holding GmbH, which should improve its global reach. As an addition, the company also expects the acquisition to be "significantly accretive to Aconex earnings per share (EPS)" during the 2017 financial year.
Of course, acquisitions do introduce new risks that investors need to be aware of. As investors of Slater & Gordon Limited (ASX: SGH) quickly discovered, companies may overpay on their acquisitions while the two existing businesses mightn't integrate as effectively as first planned. However, acquisitions can also pave the way for new growth.
Unfortunately, however, it seems that many of the early gains have already been made. The company already boasts a market value of roughly $1.04 billion, despite reporting revenues of just $55.7 million and a net profit of $4.6 million during the latest half-year period.