Autodesk, which mostly develops software for manufacturing including 3D printing, is in the process of acquiring BuildingConnected, which will add bid management, risk analysis and other preconstruction solutions to Autodesk’s construction portfolio.
Autodesk will pay $275 million in cash, with the deal expected to close by the end of January 2019 and to be included in Autodesk’s fourth quarter figures. Autodesk says it will not have any effect on this year’s figures, though the company is expecting an immaterial revenue and Annualized Recurring Revenue (ARR) benefit from BuildingConnected and a slightly dilutive impact to profitability and cash flow for the next financial year.
Andrew Anagnost, CEO of Autodesk, commented: “We are investing in digitizing and automating construction workflows. Autodesk’s goal is to connect construction processes across design, build and operations. BuildingConnected has proven to customers the tremendous value in moving from traditional rolodexes, whiteboards, emails and spreadsheets to an easy-to-use digital bidding platform. BuildingConnected, along with Autodesk BIM 360, Revit, AutoCAD, and our acquisitions of PlanGrid and Assemble Systems, gives us a comprehensive construction offering and go-to-market capabilities. We look forward to integrating our recent acquisitions and making construction Autodesk’s next billion-dollar business.”
BuildingConnected has built a network of more than 700,000 construction professionals, helping real estate owners and general contractors find and hire qualified contractors for their projects. BuildingConnected’s customers include Turner Construction, McCarthy, Mortenson, StructureTone, Skanska, Clark Construction, Ryan Companies and AECOM. Autodesk is planning to use this network to create a robust digital marketplace for construction goods and services.
Jim Lynch, Vice President and General Manager of Autodesk Construction Solutions, explained: “This acquisition provides an opportunity for Autodesk and BuildingConnected to connect every business in the construction industry, becoming the definitive source of information throughout the sector.”
BuildingConnected also runs TradeTapp, a subcontractor risk analysis platform, and Bid Board Pro, a platform that helps subcontractors manage and win more bids.
In the meantime, Autodesk has completed the acquisition of PlanGrid, which develops construction productivity software, for $875 million net of cash. Autodesk funded the transaction using a combination of cash on hand and a short-term loan.