Fortive’s Acquisition Of Accruent For A Whopping $2 Billion Is The Biggest Deal In The Smart Building Software Market To Date
On July 31, 2018, industrial technology solutions giant Fortive announced that it has entered into an agreement to acquire Accruent, a real estate and facilities management software provider, from private equity firm Genstar Capital. Fortive will pay $2 billion in cash and expects Accruent to generate revenues of $270 million in 2018. This will come from its suite of software products used by Accruent’s 10,000 customers. Upon completion of the acquisition, Accruent will become part of Fortive’s portfolio of Field Services solutions alongside other brands such as Fluke, Gordian and Industrial Scientific. Verdantix finds this is the biggest deal to date in the $4.9 billion market for real estate and building management software, which we define further in our recent report.
This deal significantly grows Fortive’s footprint in the facilities management software market. Over the past eight years, Accruent has pursued an aggressive acquisition-led strategy to become one of the five largest facilities management software vendors by revenue. Since its founding, Accruent has made 19 acquisitions, making the majority of them after it received backing by private equity firms Vista Equity Partners (2009 to 2016) and Genstar Capital (2016 to 2018). These acquisitions have included CAFM and CMMS specialists focused on sectors such as healthcare, retail and telecoms. Fortive identifies cross-sell opportunities for the Accurent customer base with Fortive’s Gordian construction software and Fluke Digital Systems, which includes Fluke Sensors, eMaint CMMS and SCHAD Mobile Work Management solutions.
What does the deal mean for the broader real estate and building management software market? The deal shows the market is consolidating at a rapid rate. The largest real estate software vendors MRI, RealPage and Yardi have been locked in an arms race of acquisitions to further bolster their scale. Meanwhile, IWMS vendor Planon has pursued targeted acquisitions to support international expansion. This latest deal also highlights the emerging push by software vendors to make greater linkages between software used during the construction and operational phases of buildings. Witness Elecosoft, a construction software provider, acquiring Shire Systems, a CMMS vendor, to offer the construction firms and property investors it engages with a maintenance management solution.
For further insights into the real estate and building management software market, sign up to our upcoming webinar, What You Need To Know To Select A Real Estate Or Facility Management Software Solution, taking place on August 30, 2018.