The M&A Whirlwind In Real Estate Software Continues As MRI Software Acquires FSI

On August 16, 2021, global real estate software vendor MRI Software (MRI) announced that it had acquired FSI, a UK-headquartered provider of IWMS software. The acquisition will expand MRI’s software portfolio for building occupiers and facilities contractors and enhance its ability to capture building IoT data. Founded in 1990, FSI has over 300 clients, with a large footprint in the UK facilities services sector and clients such as Interserve, Joss Group and TAD Facilities Management.

Since its founding, private equity-backed MRI has made 41 acquisitions across the real estate software ecosystem, making it one of the fastest-growing and most acquisitive vendors in the sector. Some of its most recent deals have focused on software solutions for building occupiers, such as its acquisitions of WhosOnLocation and Manhattan in March and April 2021 respectively. The acquisition of FSI will bolster MRI’s ability to help firms drive efficiency and digitization across facilities management processes. In our 2019 Green Quadrant analysis, we found that FSI provides a strong portfolio of mobile apps for facilities engineers, helping them run maintenance tasks more effectively and access asset data more easily.

What does the deal mean for the broader software market? This transaction confirms that 2021 is set to be the busiest year yet for M&A in the real estate software market. We expect vendors will keep pursuing acquisitions to build international scale and grow resources. In addition, the recent injection of new private equity funding into firms such as Condeco, iOFFICE and RealPage increases the number of vendors with strong financial backing hungry for fast growth. With the rapid pace of deals set to continue, firms considering a strategic takeover in the real estate software market must clarify their acquisition strategy, as the most attractive targets are getting snapped up fast.

For more insights into the evolving software landscape, read our report Verdantix Smart Innovators: Smart Workplace Technology.

SB The MA Whirlwind In Real Estate Software Continues As MRI Software Acquires FSI

Susan Clarke

Research Director, Smart Buildings, Verdantix

Susan leads the Verdantix Smart Buildings practice. Her current research agenda focuses on software solutions for real estate management including integrated workplace management systems and IoT platforms for buildings. Her research expertise also includes a broad range of energy management technologies and energy services. Susan has eight years of experience in technology research. She holds a MSc from the University of London in Sustainable Development.