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Nemetschek to acquire GoCanvas for over USD700 million

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Nemetschek to acquire GoCanvas for over USD700 million

Jun 6, 2024 | Hot Topics

Deal news is flowing fast right now … Today, the Nemetschek Group announced that it will acquire the shares of GoCanvas Holdings, a US-based company that makes field worker collaboration solutions — so, on a construction site. GoCanvas connects the job site on one (SaaS) platform to centralize work documents, making it easier to track project progress, manage submittals and approvals, and generate schedules and invoices. Nemetschek says GoCanvas has more than 300,000 active users worldwide, with a staff of 300.

GoCanvas will become part of Nemetschek’s Build segment. The company says Build “help[s] customers efficiently collect real-time data, collaborate across worksites, make data-driven business decisions, and replace paperwork with smart, simple workflows. [GoCanvas adds to this, as it] digitizes traditionally paper-based processes, simplifies inspections, improves safety, and maximizes compliance.”

Nemetschek’s press release says that GoCanvas generated an “ARR of USD 67 million, … [and] growth is expected to stay at the level of around 20% in the coming years,” in part by expanding its footprint, with Nemetschek’s help, in Europe and Asia. The acquisition should also benefit other Nemetschek brands, as it “strengthens Nemetschek Group’s positioning in the US,” traditionally a weaker geo for the Group.

The companies say the purchase price is “around” an 11.5x multiple of 2023 ARR. So, not exact by any means, but it looks like the purchase was 11.5x$67 million, or $770 million—not a small deal. The acquisition is expected to close this summer.

My take? Nemetschek’s largest brand (by revenue), Bluebeam, sells collaboration solutions to the AEC industry; GoCanvas’s mobile data collection and workflow automation tools squarely target the construction site. I’m not clear on the joint go-to-market, but it sounds as though Bluebeam will integrate GoCanvas in some way to offer a combined solution that’s specific to the needs of field workers. Interestingly, the announcement also says, “This synergy will enhance operational efficiency, safety, and collaboration across various sectors, including construction, manufacturing, and energy” — the first I’ve seen of an ambition at Nemetschek to branch out of AEC. We’ll know more after the deal closes.

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