This morning Fortive announced the acquisition of Accruent, owned by the private equity group Genstar Capital. Conference call at 8:30am.
Deal details:
· $2B in cash, financed by cash & debt
· expected to close in 3Q18, accretive to FCF and EPS in 2019
· fits Fortive’s strategy to add recurring revenue businesses, in the connected devices & IoT/data analytics
· 10% ROIC by year 6
· Synergies possible with Fluke and recently acquired Gordian
Company description:
· Accruent is a global software company that provides resources to companies to manage their facilities/real estate/physical assets in a cloud-based framework. This software tracks the full life cycle of real estate and facilities: capital planning, lease accounting, space management, field service management
· employs 1,100 employees and serves 10,000 global customers across a wide range of industries
· 20% of its revenues is international (serves 150 countries)
· total addressable market for Accruent’s software is $7B, #1 in this market
· revenue of $270M in 2018, 50% software-as-a-service, 70% recurring revenue base, high revenue retention and low cyclicality
· Adjusted EBITDA margins of 37%
· Long runway for additional M&A in that market
$FTV.US
[tag FTV]
Julie S. Praline
Director, Equity Analyst
Direct: 617.226.0025
Fax: 617.523.8118
Crestwood Advisors
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Suite 500
Boston, MA 02109
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