Addnode Group’s $16 Million Purchase Of Service Works Group Adds To The Hectic Deal Flow In The Facilities Management Software Market
On 31 July 2017, Sweden-headquartered IT services provider Addnode announced its acquisition of Service Works Group (SWG) in an SEK 132 million ($16.3 million) deal. UK-headquartered SWG generated revenues of £6.4 million ($8.3 million) in 2016 across its facilities, property and workplace management software solution and its specialist software to support the operational management of PPP (public-private partnership) contracts.
SWG will sit within Addnode Group’s Design Management division, which provides technology solutions and advisory services for the construction, property and industrial sectors. There are some obvious synergies here. SWG’s software is currently being used to manage over 200 PPP contracts globally, and its facilities management solution has strong functionality for managing maintenance tasks at large or very complex sites such as hospitals, airports and universities. Verdantix will provide an in-depth analysis of SWG’s functionality in our upcoming Green Quadrant software benchmark of Integrated Workplace Management System (IWMS) solutions.
This latest deal confirms that acquisitions across the real estate and facilities management software market are not slowing down in pace. Our deal analysis finds that since the start of 2014, deals across the real estate, energy and facilities information management market have totalled $1.8 billion. Firms looking to grow their position in the CAFM or IWMS market are being put under increasing pressure to determine their strategy as many of the obvious targets offering a significant step up in capabilities with established client lists are being snapped up.
For more insights into recent deal flow across real estate and facilities management software see our report Real Estate Software Deals Reveal Vendors’ Response To Facilities Optimization Trends.