Quick Take
Trimble (NASDAQ:TRMB) has announced an agreement to acquire Viewpoint for $1.2 billion in an all-cash deal.
Viewpoint has developed a fully integrated construction software suite for construction companies of all sizes.
TRMB is acquiring Viewpoint as part of a larger strategy to focus on construction management as the industry continues its transition to digital technologies.
Target Company
Portland, Oregon-based Viewpoint was founded in 1976 to provide construction-specific solutions to companies seeking to improve productivity, reduce costs and project results.
Management is headed by Chairman and CEO Manolis Kotzabasakis, who has been with the firm since August 2015 and previously held senior positions at Aspen Technology.
Below is an overview video of Viewpoint:
(Source: Viewpoint)
Viewpoint’s primary offerings within its software suite include:
- Field Productivity
- Operations
- Service Management
- Financials
- Payroll and HR
- Project Management
- Estimating
- Collaboration
Its software is used in several construction-related subgroups such as General Contractors, Specialty Subcontractors, Heavy/Civil Contractors and Owner Operators.
In April 2014, Bain Capital Private Equity acquired a sizeable stake in Viewpoint for $230 million from two existing investors, Updata Partners and TA Associates.
The deal was considered a relatively small size for the private equity arm.
Market & Competition
According to a 2017 market research report by Technavio, the global construction software industry was expected to grow at a CAGR of 13.70% from 2017 to 2021.
The main drivers for this forecasted growth are a demand for construction management software in the APAC region as well as within the utilities sector, according to a Research and Markets report.
Major competitive vendors that provide construction software include:
- Newforma
- Procore
- ComputerEase
- BuilderTREND
There are numerous other smaller providers of various suites and subsets that the major vendors including Viewpoint sell.
Acquisition Terms And Rationale
Trimble is paying $1.2 billion in an all-cash deal, which
