Archibus’s Purchase Of SpaceIQ Will Strengthen Its Position In The Growing Space Management Software Market
On May 13, 2020, IWMS vendor Archibus announced that it had acquired SpaceIQ, a specialist workplace management software provider, headquartered in Mountain View, California. It purchased SpaceIQ from WeWork, the co-working giant. This is the second acquisition by Archibus in two years, having acquired Serraview, another specialist workplace management software provider, in late 2018.
With the COVID-19 pandemic upending the usage of real estate worldwide, why make the acquisition now? Archibus is looking to expand its market reach by offering a software solution that is competitive in the mid-market. Archibus will leverage SpaceIQ’s open platform and lighter touch deployment process to appeal to mid-market buyers, targeting firms with revenue between $25 million and $500 million. This will diversify the existing client base of Archibus and make it less reliant on contracts with larger corporates that operate with revenue typically above $1 billion. SpaceIQ already has mid-size customers such as CURO Financial Technologies Corp, Leapfrog, and Instructure.
Verdantix considers this a strong strategic move, for two reasons. The first is that the market SpaceIQ operates in is flourishing. Even following the current crisis, Verdantix forecasts the space and workplace management software market to grow at 12% per year between now and 2024. Growth will be driven by cost-control measures such as space rationalization, and corporates exploring reconfiguring solutions to help set up safe workspaces for those not working from home. It is noteworthy that demand for space management software also grew during the financial recession, as firms wanted to rationalize their real estate.
The second reason is that this acquisition is an apt response to the growing pressure from other private equity backed IWMS vendors, that have also been rapidly growing their resources in the space and workplace management software market. Over the past year, FM:Systems acquired workplace analytics software specialist Rifiniti, and the workplace services division of Asure Software, along with Asure’s subsidiary OccupEye, a sensor-based utilization analytics solution. iOFFICE acquired room booking innovator Teem (also a subsidiary of WeWork) in early 2020. Archibus, FM:Systems and iOFFICE all acquired dynamic specialists to scale up their commercial footprint, and deepen their capabilities in line with changing customer demands.
For more insights into this dynamic software market, register for our upcoming webinar 2020 Smart Office Tech Roadmap: Where Is The Market Heading? And read our recent report: Market Size And Forecast: Space And Workplace Management Software 2019-2024 (Global).