As stated in the Trimble New Release, Trimble’s acquisition of Manhattan Software last week was to accelerate its ability to deliver total building lifecycle management solutions that will allow owners and facilities managers to access data captured during the building planning, design, construction and renovation phases to provide deeper insights, better operating decisions and better asset performance.
As is widely reported, buildings and their management are second only to personnel costs as the largest expense item on corporate income statements. Therefore, the market is enormous for those vendors that can execute upon Trimble’s stated investment rationale. However, this is easier said than done given the significant number of stakeholders (Owners, AEs, Contractors, Sub-contractors, Business Product Manufacturers, Building Users, and Oversight Groups) and the lack of shared processes, ontologies, metrics and best practices.
In addition, as illustrated below, there are many functional components that make up the building lifecycle ecosystem, so providing an integrated, end-to-end solution represents significant challenges. And finally, any vendor that wants to provide an end to end solution also needs to provide numerous enabling technologies and professional services including: process consulting and system integration, building information modeling, geospatial information management, analytics, visualization, and mobility capabilities.
While Trimble has some competition (see buyer list below) there are hundreds of smaller, best of breed point solution providers that specialize in one or more of these functional silos. We expect the Trimble acquisition to kick-off further acquisition activity in an already consolidating marketplace. Some of the most likely consolidators include:
- ERP – Oracle & SAP
- CAD– Autodesk & Siemens
- Industry Roll-Up – (Accruent owned by TA Associates & Vista Equity)
- Enterprise Asset Mgmt. – IBM & Indus
- Building Efficiency & Automation – Johnson Controls & Schneider Electric S.A.
- Large System Integrators – Deloitte & L&T
Examples of the most likely targets, many of which are Boston natives, include:
If you are a best of breed point solution provider within the building lifecycle ecosystem, this is a great time to explore your exit opportunities given the strong field of buyers, favorable industry dynamics and strong M&A fundamentals.