Aconex & Hexagon acquisitions keep up the pace in AEC
The world of engineering software had blistering pace of acquisitions at the start of the year, slowed a bit but seems to be picking up steam again. Two came across the wires in the last few days:
First, Aconex announced that it is acquiring Conject for €65 million. Aconex makes a collaboration platform for the construction industry and Conject provides cloud and mobile collaboration solutions as well as financial planning and contract management, inspection and defects management, and workspace and facility management solutions. The transaction is expected to close by the end of March 2016 but is still subject to customary closing conditions. Aconex CEO Leigh Jasper explained it this way: “This acquisition will significantly expand our market penetration and user network throughout Europe, and will further consolidate our position as the leader, by revenue, in the global market for cloud-based construction collaboration solutions. [Conject’s] footprint across Europe’s largest construction and infrastructure markets — particularly Germany, the U.K., France, and Russia — will measurably strengthen our presence and further drive our global economies of scale by leveraging our existing infrastructure.”
Dr. Ralf Händl, CEO of Conject adds that, “on the close of this transaction, the merged company will be the world’s market leader, by revenue, in cloud-based construction collaboration … This business combination has the potential to accelerate the growth of our industry and deliver increasing value to our joint customers worldwide.”
For the six months ended December 31 2015, Aconex reported revenue of A$55.7 million (roughly $42 million). Conject had revenue of €24.5 million ($27.4 million) for fiscal 2015 — so this is a really big deal for Aconex, which hasn’t been shy about growing by acquisition.
Finally, Hexagon said it will acquire the GeoRadar division of Ingegneria dei Sistemi S.p.A, which provides radar solutions to the mining and geospatial industries for structural health monitoring and underground utility mapping. GeoRadar’s solutions enable engineers to remotely monitor the their assets, looking for changes in mine walls or landslides in mining or for structural changes in building, bridges, roads and dams. The underground utility detection solutions help engineers discover the size and location of buried assets, and also assess the health of these assets by identifying defects such as cracks or cavities.
Hexagon CEOOla Rollén said that GeoRadar’s solutions “nicely complement our reality capture solutions, enriching Hexagon’s portfolio across … surveying, construction and mining. Additionally, combining GeoRadar’s technologies with our mobile reality capture portfolio broadens our solution offering for large-scale asset management across segments like utilities, road and rail.”
This transaction is expected to close by June 2016 and also remains subject to customary closing conditions. No info on the price paid, bu Hexagon says that IDS GeoRadar had revenue of approximately €18 million in 2015.