AEC software provider Autodesk signed a definitive agreement to acquire BuildingConnected for $275 million net of cash acquired. 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 digital marketplace for construction goods and services.
BuildingConnected has built a network of more than 700,000 construction professionals, helping real estate owners and general contractors find and hire qualified contractors for their projects. Its customers include Turner Construction, McCarthy, Mortenson, StructureTone, Skanska, Clark Construction, Ryan Companies and AECOM.
“Bid management is a critical step in preconstruction, since bidding is the genesis of construction projects,” said BuildingConnected CEO and co-founder Dustin DeVan. “We’ve helped thousands of owners, general contractors and subcontractors streamline their businesses and communicate better. Together with Autodesk, we can expand the platform’s capabilities and scale globally.”
In addition to its bid-management platform, BuildingConnected offers TradeTapp, a subcontractor risk analysis platform, and Bid Board Pro, a platform that helps subcontractors manage and win more bids. BuildingConnected is the only bid-management platform that provides general contractors and owners with project-specific risk mitigation recommendations based on subcontractor qualification data. This helps contractors efficiently vet and make more informed decisions when selecting subcontractors.
“We are investing in digitizing and automating construction workflows,” said Autodesk CEO Andrew Anagnost. “Autodesk’s goal is to connect construction processes across design, build and operations. BuildingConnected has proven to customers the tremendous value in moving from traditional rolodexes, whiteboards, emails and spreadsheets to an easy-to-use digital bidding platform.”
The transaction is subject to customary closing conditions and is expected to close during Autodesk’s fourth quarter of fiscal 2019, ending Jan. 31, 2019.
PlanGrid Acquisition
The company also completed the acquisition of PlanGrid, a 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.
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.