Nasdaq-listed Autodesk said that it will acquire PlanGrid, a leading provider of construction productivity software, for $875 million. This acquisition will enable Autodesk to offer a more comprehensive, cloud-based construction platform.
The $27 billion Autodesk is best known for its architecture program AutoCAD
Founded in 2012, PlanGrid is a GV (formerly Google Ventures) and Sequoia Capital-backed construction productivity tool.
PlanGrid software lets general contractors, subcontractors and owners in commercial, heavy civil and other industries work together throughout the construction project lifecycle. PlanGrid software offers real-time collaboration, keeping the field and the office on the same page. It gives builders real-time access to project plans, punch lists, project tasks, progress photos, daily field reports, submittals and more.
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“As designing and making converge, Autodesk is connecting project data from design through construction and putting predictive insights into the hands of contractors,” said CEO of Autodesk, Andrew Anagnost in a statement.
“There is a huge opportunity to streamline all aspects of construction through digitization and automation. The acquisition of PlanGrid will accelerate our efforts to improve construction workflows for every stakeholder in the construction process.”
“At PlanGrid, we have a relentless focus on empowering construction workers to build as productively as possible,” said Tracy Young, Co-founder and CEO of PlanGrid.
“One of the first steps to improving construction productivity is the adoption of digital workflows with centralized data. PlanGrid has excelled at building beautiful, simple field collaboration software, while Autodesk has focused on connecting design to construction. Together, we can drive greater productivity and predictability on the jobsite.”
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Young founded PlanGrid with Ralph Gootee, Ryan Sutton-Gee, Antoine Hersen, and Kenny Stone in the fall of 2011. Prior to founding PlanGrid, Young helped build several hospitals as a construction engineer. She likes to joke that she went from working for one superintendent to hundreds of thousands through PlanGrid.
Autodesk and PlanGrid have developed complementary construction integration ecosystems to which customers can connect other software applications. The acquisition is expected to expand the integration partner ecosystem, giving customers a customizable platform to test and scale new ways of working.
The transaction is subject to customary closing conditions and is expected to close during Autodesk’s fourth quarter of fiscal 2019, ending January 31, 2019. By fiscal year 2020, Autodesk expects PlanGrid to contribute approximately $100 million in ARR