iOFFICE Makes An Interesting Strategic Move Through The Acquisition Of Hippo CMMS
On November 5, 2019, integrated workplace management system (IWMS) vendor iOFFICE announced it has acquired Hippo CMMS. The deal provides iOFFICE with 40 new staff based in Canada and 1,200 customer contracts which span 11,650 sites. Hippo CMMS was founded in 2004 and its SaaS solution is used by clients in sectors including manufacturing, healthcare, retail and restaurants to manage maintenance data and work orders. The terms of the deal were not disclosed.
Verdantix finds that the acquisition is a strong move for iOFFICE. While iOFFICE already offered asset and maintenance functionality within its IWMS platform, in our software benchmark published in March 2019 we found it lagged some of the other IWMS vendors for work order management and vendor management functionality. Hippo CMMS provides iOFFICE with a more comprehensive solution that can meet the maintenance needs of sectors that have complex demands. For example, Acme Manufacturing Company’s maintenance team is using Hippo CMMS to manage equipment data and view maintenance work orders on plant layout diagrams. Other clients using Hippo CMMS include Rolls-Royce, Chem-Plate Industries and Emerson in the industrial sector, and Brunswick Forest, North York General and Seven Oaks Hospital in the healthcare sector.
Other IWMS vendors have been bolstering their maintenance management offerings. For example, FM:Systems adapted its IWMS so that buyers can purchase its maintenance module on a standalone basis. Planon has been improving its functionality aimed explicitly at outsourced facilities services vendors, such as offering new functionality that enables firms to automatically allocate work to engineers. FSI has launched new contractor management functionality in its Concept Evolution platform, helping facilities services firms manage multiple tiers of contractors.
Clearly strengthening its maintenance capabilities makes sense for iOFFICE in the current market. But the true potential of this acquisition will only become apparent if and when it manages to expand its footprint within Hippo CMMS’ target industries, where outside of manufacturing sites the iOFFICE solutions are highly applicable. Selling iOFFICE to half of Hippo CMMS’ customers would grow the iOFFICE customer base by 43%.
To learn more about corporate budget and priorities for software to manage maintenance processes, sign up to up webinar next week 2020 Benchmark For Corporate Smart Building Technology Budgets & Priorities.
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