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Fortive to acquire Gordian for USD 775mn
Posted on Wednesday, 04 July 2018 07:26
Fortive has reached an agreement to acquire Gordian, a leading provider of construction data and software, for USD 775.00 million from private equity firm Warburg Pincus.
The company, billed as a diversified industrial growth group with USD 6.70 billion in annual revenue, is expecting the purchase to provide entry into the facilities maintenance and management category in the construction software market, said to be worth around USD 20.00 billion.
Fortive will also gain a long runway of consistent revenue growth while enhancing its software enabled workflows, increasing its profile and reducing cyclicality.
Closing is subject to regulatory approvals, among other conditions, and is expected to be financed in cash.
Following completion, slated for the third quarter of 2018, Fortive has given a timeframe of five years to achieve a 10.0 per cent return on invested capital.
Gordian claims to be a world leading construction cost data, software and services provider, which breaks down planning and design, procurement, construction and operations for a range of clients including contractors, architects and engineers.
Some of the company’s capabilities include connecting owners and contractors in the same exchange and providing access to cost and facilities metrics databases via a subscription-based model.
Gordian is expected to generate USD 130.00 million in revenue this year and will become part of Fortive’s field solutions platform, which comprises Fluke, Qualitrol and Industrial Scientific.
Fortive was formed in 2016 through a corporate restructuring of Danaher, worth about USD 20.00 billion.
It has since been involved in a number of sizeable transactions including the USD 770.00 million paid for US-based occupational and environmental radiation analytical services provider Landauer in October 2017.
Fortive’s largest acquisition to date, according to Zephyr, the M&A database published by Bureau van Dijk, was announced last month as the company submitted a binding offer to acquire Advanced Sterilization Products Services from Ethicon, a subsidiary of Johnson & Johnson, for USD 2.80 billion.
This deal is subject to regulatory approvals and is expected to close before the end of January 2019.
© Zephus Ltd