In keeping with an aggressive business plan focused on software development for the construction industry, Autodesk has made two key acquisitions that it hopes will broaden its construction management platforms.
Today, the company says that it has completed its $875 million cash acquisition of PlanGrid, a seven-year-old startup based in San Francisco, which provides construction productivity software that enables GCs, subcontractors, and owners to have real-time access to project plans, digital blueprints, punch lists, work tasks, progress imagery, daily field reports, and submittals.
Also today, Autodesk discloses that it has signed a definitive agreement to acquire BuildingConnected for $275 million in net cash. San Francisco-based BuildingConnected was founded in 2012, and has grown to become the largest digital network of construction professionals, with more than 700,000 people in its database. Its cofounder Dustin DeVan had been a general contractor before starting the company, which currently has about 180 employees.
BuildingConnected helps owners and GCs find and hire qualified contractors for their projects. It moves Autodesk into preconstruction planning to help contractors decide which subs and suppliers to go with. It includes TradeTapp, a subcontractor risk analysis platform; and Bid Board Pro, a platform that helps subs manage and win more bids. BuildingConnected’s customers include such contractor giants as Turner, McCarthy, Mortenson, StructureTone, Skanska, Clark, Ryan Companies, and AECOM.
(Autodesk has taken a particular interest in developing products that get subs more involved earlier in projects. At its recent Autodesk University event in Las Vegas, Autodesk showcased its strategic alliance with eSub Construction Software, a cloud-based system of record for trades to plan and track their employees’ productivity. eSub is the field data component within Autodesk’s BIM 360 platform.)
Its latest acquisition “provides an opportunity for Autodesk and BuildingConnected to connect every business in the construction industry, becoming the definitive source of information throughout the sector,” says Jim Lynch, Vice President and General Manager, Autodesk Construction Solutions. “Our tools empower all stakeholders with greater visibility and better information to make immediate decisions. We’re excited about creating a robust digital marketplace for the global construction industry, helping to boost productivity, while lowering cost and risk.”
BuildingConnected has 700,000 trades in its database, and helps contractors select the best subs and suppliers for their projects. Image: Autodesk
A late bloomer when it comes to implementing technology, the construction sector is now embracing tech to help manage projects at a time when the industry is grappling with labor shortages and other factors that cause 70% of construction projects to be delivered late and/or over budget.
Capturing, analyzing, and disseminating design- and construction-related data are the primary objectives of Autodesk’s product development and expansion strategies. “We are trying to completely digitize the construction process all the way from design to build,” Andrew Anagnost, Autodesk’s evangelical CEO, tells Forbes. “With the completion of [the purchase of] BuildingConnected, we feel we have acquired all the important assets we need to acquire.”
Clayco, the design-build firm, chose Autodesk BIM 360 and PlanGrid to help digitize each step of the construction process in order to accelerate project delivery, reduce risk and increase productivity. “I’m excited to see how Autodesk and PlanGrid will work together to encourage collaboration between the project team and owners from the time a building is conceived, all the way through to handover,” says Bob Clark, Clayco’s founder and CEO.
Autodesk expects PlanGrid to contribute approximately $100 million in annual recurring revenue. Autodesk does not project any ARR from its acquisition of BuildingConnected.
Related Stories
Sponsored | | Jun 30, 2013
Get your 'Early Bird' entry in for BD+C 30th Annual Reconstruction Awards
The deadline is for BD+C's 30th Annual Reconstruction Awards is July 19, but if you get me a draft of your entry by July 12 (earlier if possible, please!), we'll read it and give you feedback and suggestions that could help you win. We'll give you enough time to rework your entry in time to meet the deadline. We do this "Early Bird" service to help you put together the best possible entry - one that will answer any questions our distinguished jury members may come up with. However, we must emphasize that the BD+C Reconstruction Awards program is a juried competition, so there are no guarantees you'll win. We're just trying to improve your odds. Building Design+Construction is the only publication in its field to recognize the importance of reconstruction in all its forms - historic preservation, adaptive reuse, renovation, fitouts, and reconstruction with addition. And we've been doing it for 30 years. Incidentally, reconstruction accounts for 30-35% of all revenue for AEC firms, so it's a key component of the US/Canada design and construction industry. Send your draft entry to: rcassidy@sgcmail.com. And good luck!
| Jun 28, 2013
Calculating the ROI of building enclosure commissioning
A researcher at Lawrence Berkeley National Laboratory calls building enclosure commissioning “the single-most cost-effective strategy for reducing energy, costs, and greenhouse gas emissions in buildings today.”
| Jun 28, 2013
A brief history of windows in America
Historic window experts from Hoffmann Architects look back at the origin of windows in the U.S.
| Jun 28, 2013
Building owners cite BIM/VDC as 'most exciting trend' in facilities management, says Mortenson report
A recent survey of more than 60 building owners and facility management professionals by Mortenson Construction shows that BIM/VDC is top of mind among owner professionals.
| Jun 27, 2013
Thermal, solar control designs can impact cooling loads by 200%, heating loads by 30%
Underestimating thermal bridging can greatly undermine a building’s performance contributing to heating load variances of up to 30% and cooling load variances of up to 200%, says the MMM Group.
| Jun 20, 2013
Virtual meetings enhance design of University at Buffalo Medical School
HOK designers in New York, St. Louis and Atlanta are using virtual meetings with their University at Buffalo (UB) client team to improve the design process for UB’s new School of Medicine and Biomedical Sciences on the Buffalo Niagara Medical Campus.
| Jun 14, 2013
Purdue, industry partners test light steel framing for seismic safety
A partnership of leading earthquake engineering researchers from top U.S. and Canadian universities and design professionals from the steel industry have begun the final phase of a three-year project to increase the seismic safety of buildings that use lightweight cold-formed steel for their primary beams and columns.
| Jun 11, 2013
Finnish elevator technology could facilitate supertall building design
KONE Corporation has announced a new elevator technology that could make it possible for supertall buildings to reach new heights by eliminating several problems of existing elevator technology. The firm's new UltraRope hoisting system uses a rope with a carbon-fiber core and high-friction coating, rather than conventional steel rope.
| Jun 4, 2013
SOM research project examines viability of timber-framed skyscraper
In a report released today, Skidmore, Owings & Merrill discussed the results of the Timber Tower Research Project: an examination of whether a viable 400-ft, 42-story building could be created with timber framing. The structural type could reduce the carbon footprint of tall buildings by up to 75%.
| May 30, 2013
5 tips for running a successful BIM coordination meeting
BIM modeling tools are great, but if you can't run efficient, productive coordination meetings, the Building Team will never realize the benefits of true BIM coordination. Here are some helpful tips for making the most of coordination meetings.
