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Consolidation Roars Ahead In The Real Estate And Facilities Software Market As MRI Software Acquires Qube Global Software

On October 4, 2017, MRI Software, a provider of real estate software solutions backed by GI Partners, announced the acquisition of Qube Global Software, a UK-headquartered property and facilities management software vendor. The acquisition will boost US-headquartered MRI Software’s presence in Europe, providing it an additional 280 employees and growing its client list by around 1,000 organizations. This deal follows hot on the heels of MRI Software’s acquisition of UK-headquartered Real Asset Management announced last month, a UK-headquartered supplier of asset management and maintenance management software.

What are the key takeaway for market participants? This latest acquisition demonstrates yet again consolidation is continuing at a rapid pace in the real estate and facilities software market. Other recent deals include Addnode Group buying facilities management software vendor SWG for SEK 132 million ($16.3 million) in July 2017 and Accruent making its fourteenth software acquisition by acquiring integrated workplace management system (IWMS) vendor Lucernex in August 2017. Verdantix expects acquisition activity will not slow down given that vendors such as Accruent, Dude Solutions, Condeco and Tango Analytics are backed by private equity funding with ambitious growth plans.

Another point for executives to bear in mind: Consolidation is typically associated with lower competitive pressure – fewer firms responding to RFPs and pushing prices down. However, that is unlikely in this industry. US vendors have been opening new offices in Europe and making acquisitions of local firms. Most of the large real estate software firms have ambitious plans for global expansion. Increased competition in Europe will require vendors to be clear on their competitive differentiators – in particular we are seeing many of them pushing to create and market sector specific capabilities.

For an analysis of recent geographic expansion activities by IWMS vendors in Asia, Europe and North America, see the recent Verdantix report "IWMS Vendors Are On A Collision Course As Geographic Expansion Ramps Up".