Autodesk to acquire smart water infrastructure software maker Innovyze for $1B
Autodesk Inc. (NASDAQ: ADSK) said it has signed a definitive agreement to acquire Portland, Oregon-based Innovyze Inc. for $1 billion.
The deal for the developer of water infrastructure software is net of cash and subject to working capital and tax closing adjustments. The acquisition (described in this PDF) is intended to position Autodesk as a technology leader in end-to-end water infrastructure solutions from design to operations, accelerate the company's “digital twin strategy” and creates a clearer path to a more sustainable and digitized water industry.
The transaction is set to close in Autodesk’s first quarter, ending April 30, subject to customary closing conditions.
Innovyze makes modeling, simulation and predictive analysis software to enable more cost-effective and sustainably designed water distribution networks, water collection systems, water and wastewater treatment plants, and flood protection systems, according to Autodesk. Those solutions centralize infrastructure asset visibility to optimize capital and operational expenses.
Autodesk intends to combine the Innovyze portfolio with Autodesk Civil 3D, Autodesk InfraWorks and the Autodesk Construction Cloud. It would offer civil engineers, water utility companies and water experts the ability to better respond to issues and to improve planning, the company said.
For 35 years, Innovyze has been building innovative software for the water industry and is used by around 3,000 customers worldwide, including utility companies in many of the most populous cities across five continents. Customers include a majority of ENR magazine’s top ranked design firms, plus leading environmental and engineering consultancies.
More than 2 billion people lack access to safe drinking water at home, and by 2025 more than two-thirds of the world's population will reside in water-stressed areas, according to Autodesk.
"We can achieve a more sustainable planet, but we can't do it without responsibly managing our use of water and securing its future," said Andrew Anagnost, president and CEO, in the announcement Wednesday. "An estimated $1.9 trillion is required to address global water infrastructure needs by 2030, and by fundamentally changing the way systems are designed, constructed, and operated, we are best positioned to overcome this challenge and realize the better world we've imagined."
Nearly 9 trillion gallons of water are lost each year worldwide due to prolonged leaks and pipe breaks, but we cannot manage or fix what we cannot see, according to Amy Bunszel, executive vice president for AEC Design Solutions at Autodesk.
"Innovyze's portfolio of operational analytics, distribution modeling, and asset management solutions provides the insight needed to identify this and other potential problems before they become a crisis," Bunszel said.
Colby Manwaring, CEO of Innovyze, said the company “has been a hidden part of the daily lives of millions of people around the world, helping to deliver fresh, clean water, managing sewage and flooding in our communities, and turning wastewater into safe water” for more than three decades.
"Similarly, if you look at the built world around us, Autodesk's design DNA is found in just about every structure you see above ground and below, so it makes strategic sense to bring together our complementary organizations critical to much of the world's population,“ Manwaring said. ”We look forward to completing the acquisition and getting to work, together."