Market Insights by SEG: Trimble Acquires Viewpoint

SEG Sector Deals provide transaction highlights, relevant insights, and SEG’s perspective on interesting M&A deals within the software industry. 

Trimble announced the acquisition of Viewpoint, a provider of integrated software solutions for the construction industry, for $1.2B (6.0x EV/Revenue). Previously backed by Bain Capital, Viewpoint manages over $400 billion of construction project value and has about 8,000 customers worldwide.

The acquisition of Viewpoint marks Trimble’s second transaction for the year following the 1Q18 acquisition of e-Builder, which was purchased for $500M (9.4x EV/Revenue). Viewpoint’s solution compliments e-Builder, as both companies join a list of over half a dozen construction-centric software companies having been purchased by Trimble in past years.

Viewpoint’s solution will round out Trimble’s construction management solution, creating a comprehensive, end-to-end suite of solutions. While the acquisition expands Trimble’s addressable market and enhances revenue growth, it also promotes Trimble’s strategy of leading digital acceleration within the construction industry.

SEG’s Take

This transaction reflects the health of the M&A markets, particularly in the real estate software sector. The sector had a record-setting year, posting 100 real estate software transactions in 2017. According to SEG’s 2018 Real Estate Software Snapshot, deal volume continued to grow for the fourth consecutive year, and has grown by 17% on a CAGR basis since 2014.

Specifically in the commercial software sector, which consists of software companies providing tools for corporate and commercial facilities management, site selection, construction, building design and lease management, the sector has shown strong M&A activity in 2017. Of the 100 real estate software M&A transactions tracked by SEG in 2017, 35% were in commercial real estate software sector, making this the second largest category after residential software (with 49%).

Furthermore, SEG has tracked a number of notable sector transactions in 1Q18, which points to the continuing health of the real estate software M&A market.

Seller Business Description:

Viewpoint is a leading global provider of integrated software solutions for the construction industry. HQ: Portland, Oregon.

Buyer Business Description:

Trimble provides geographical information systems (GIS), GPS, optical sensors and mobile resource management (MRM) systems and software for businesses and government agencies globally. HQ: Sunnyvale, CA. Read Press Release.

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