Marin County’s Autodesk spending $275M on software company
San Rafael-based Autodesk, Inc. (NASDAQ: ADSK) has signed a definitive agreement to acquire BuildingConnected for $275 million, boosting its spending on construction industry software companies to $1.1 billion.
The Marin County firm announced the BuildingConnected deal on Thursday.
BuildingConnected, with offices in San Francisco, connects real estate owners and general contractors to qualified contractors for their projects while Autodesk develops software.
'This acquisition will add bid management, risk analysis and other preconstruction solutions to Autodesk's construction portfolio. In addition, BuildingConnected's network presents an opportunity to create a robust digital marketplace for construction goods and services,' Autodesk stated in announcing the acquisition.
Jim Lynch, vice president and general manager, Autodesk Construction Solutions, said bringing in BuildingConnected into the fold will allow Autodesk to ' connect every business in the construction industry, becoming the definitive source of information throughout the sector.'
The announcement stated BuildingConnected's portfolio of software products includes those had assist contractors and subcontractors in analyzing bids and producing job bids. Autodesk's disclosure stated the deal will have no effect on guidance or revenue for the fourth quarter and fiscal year 2019, and a 'a slightly dilutive impact to profitability and cash flow' to fiscal year 2020.
In addition, Autodesk, Inc. also announced it has completed the acquisition of PlanGrid, a leading provider of 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. Also related to the construction business, PlanGrid, also located in San Francisco, is a software firm which tracks details of construction projects such as project plans, punch lists, project tasks, progress photos. Autodesk officials said its software will integrate eventually with products for the construction industry already offered by Autodesk.
The deal closed Dec. 19. Autodesk's announcement stated the fiscal impact of the acquisition for the fourth quarter will be 'modestly negative' to profitability and cash flow . In 2020, it forecasts 'PlanGrid to contribute approximately $100 million in ARR and be slightly dilutive to profitability and cash flow.'
