FM:Systems Pulls Forward In The Race For Workplace Management Market Share With $120M Asure Software Deal
On October 8, 2019, IWMS vendor FM:Systems announced it will acquire the workplace management business from Asure Software (‘Asure’). FM:Systems - backed by private equity firm Accel-KKR - will pay $120 million for Asure’s workplace business which provides room booking software and workplace sensors. The price is a 4.3x multiple of Asure’s last 12 months of workplace revenues. Asure will retain ownership of its human capital management software business and use the proceeds of the deal to pay down its debt of $114 million.
The strategic rationale for FM:Systems is to bolster its market share in the workplace management technology market. FM:Systems already has an established capability in space and workplace software through its FM:Interact platform and Rifiniti analytics offering. The deal will grow FM:Systems’ revenue by $28 million and headcount by 110 employees. There are also future commercial opportunities for FM:Systems in upgrading Asure’s blue-chip customers to its broader IWMS, tapping the trend for large firms to centralize multiple real estate processes on a single platform.
The past 12 months have been marked by significant acquisitions activity in the space and workplace software market. Archibus merged with Serraview, SmartSpace acquired SwipedOn, WeWork acquired SpaceIQ and FM:Systems bought Rifiniti. The main driver for these acquisitions is that space and workplace management is the fastest-growing segment of the smart building software market. Our research shows this market is growing at 14% annually globally, with growth as high as 22% annually in APAC. For corporates, reducing space wastage can enable a 20% saving (and sometimes much higher) on real estate operating costs.
This latest deal confirms that specialist workplace software vendors are disappearing fast. There is new pressure on private equity firms and software vendors considering an acquisition in this market to determine their acquisition strategy. To learn more about the capabilities of 23 space and workplace management software vendors read our report: Product Benchmark: Space And Workplace Management Software (2019).
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