FM:Systems Joins The Fight For Leadership Position In The IWMS Market As It Receives Private Equity Investment From Accel-KKR
On February 2, 2017, FM: Systems a North Carolina-headquartered provider of computer aided facilitates management software (CAFM) and integrated workplace management systems (IWMS), announced that it has received an undisclosed investment from Accel-KKR, a technology-focused private equity firm. FM:Systems stated it will use the injection of capital to support its ambition to take a leadership position in the IWMS market by accelerating product innovation and supporting its international expansion efforts.
This latest private equity investment in an IWMS vendor signals that the fight for a top three market position is becoming increasingly competitive. In 2016, there were a number of notable investments from private equity firms – such as Genstar Capital buying out Accruent in June 2016, Main Capital purchasing Axxerion in June 2016 and HCAP Partners investing in Lucernex in July 2016. This happened alongside a lot of acquisition activity, led by Accruent and Trimble’s Buildings Group buying up a number of point solutions to broaden their capabilities across the facilities lifecycle. This activity points to an increasingly competitive marketplace amongst the major players, with many vendors rapidly growing capabilities and resources.
For the group of IWMS vendors that have recently become flush with private equity funding, the pressure will be on for them to not only rapidly build client lists but also take advantage of new technology trends such as the Internet of Things (IoT) and Artificial Intelligence to provide new value to customers. This will require new capital to go into R&D functions as well as sales teams, and demand well-thought out technologies strategies to pinpoint the applications of new technologies to solve customer problems.
For more insights into the rapidly evolving market for real estate, energy and facilities information management (REEFIM) solutions see our report Market Overview: Real Estate, Energy and Facilities Information Management.