US: Autodesk, Inc. 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.
Autodesk and PlanGrid have developed complementary construction software. Autodesk’s BIM 360 construction management platform connects the people, data, and workflows on construction projects by supporting informed decision-making throughout the project lifecycle. PlanGrid software lets general contractors, subcontractors and owners in commercial, heavy civil and other industries benefit from real-time access to project plans, punch lists, project tasks, progress photos, daily field reports, submittals and more.
“PlanGrid has excelled at building a product portfolio and go-to-market engine for satisfying the needs of how project teams use critical project documentation to streamline everyday construction tasks,” said Andrew Anagnost, Autodesk CEO. “I’m excited to welcome the PlanGrid team and their customers to the Autodesk family. By combining our capabilities, Autodesk and PlanGrid can provide construction customers with immediate benefits and help them prepare for new and innovative ways of working, thanks to technology that improves the design, construction and operations phases.”
Autodesk plans to integrate workflows between PlanGrid’s software and both Autodesk Revit and Autodesk BIM 360 for a seamless exchange of information between all project members.
Business Perspective
As the acquisition closed on December 19, 2018, only a partial quarter of PlanGrid’s financial results will be reflected in Autodesk’s fourth quarter of fiscal 2019, ending January 31, 2019. Thus, the company expects PlanGrid to contribute slightly to revenue and be modestly negative for profitability and cashflows for the fourth quarter of fiscal 2019. For fiscal year 2020, Autodesk expects PlanGrid to contribute approximately $100 million in ARR and be slightly dilutive to profitability and cash flow. Inclusive of the transaction, the company is maintaining its free cash flow goal for fiscal 2020.
