Software Companies In Commercial Real Estate Showed Strong M&A Activity In 2017

A number of software companies focused on commercial real estate have followed the overall upward trend in real estate software M&A activity. In fact, according to SEG’s 2018 Real Estate Software M&A Snapshot, the last four years have seen consecutive growth in M&A deals in the real estate software sector.

Continued Growth In Commercial Real Estate Software M&A Activity

Commercial M&A transactions consist of software companies providing tools for corporate and commercial facilities management, site selection, construction, building design and lease management.

Of the 100 real estate software M&A transactions tracked by SEG in 2017, 35% were in commercial real estate sector, making this the second largest category after residential software (with 49%).

Highlights From 2017 Deals

In 2017, CBRE acquired Mainstream Software and Floored,  as the company looks to strategically augment its services with high value software offerings.

“Owning a suite of key enablement technologies is an integral part of CBRE’s strategy,” said Chandra Dhandapani, CBRE’s Chief Digital & Technology Officer, as stated on the company’s website. “Mainstream fits perfectly with this strategy and our combined product vision will further enable our professionals to operate more efficiently and provide superior experiences and outcomes for our clients.”

Oracle acquired construction technology vendor, Aconex ($1.2B, 10x revenue), complementing its existing solutions (Primavera and Skire) in the construction and project management segments. The acquisition will further enhance the Oracle Construction and Engineering Cloud, offering customers an end-to-end project management platform.

Battery Ventures acquired a majority stake in project information management vendor, Newforma, during 2017.

“We are excited to announce our investment in Newforma, which has built an extremely strong business focused on the AECO market, and we believe the business can scale even further in the coming years,” Battery’s Brown stated in a press release. “This is a long-term partnership for Battery, and we believe our new CEO Brock Philp has the software-industry experience to help deliver and grow the value we provide our customers.”

To read the full list of commercial real estate software M&A deals, please download our free report, SEG Snapshot: 2018 Real Estate Software M&A Update. (Please see Commercial Software Vendor Ecosystem pictured above on page 21)