Fortive agrees $775mn deal for construction cost data and software firm Gordian
US industrial technology giant Fortive has entered an agreement to buy Gordian, a Warburg Pincus firm, for $775mn in an all cash deal.
Specialising in construction cost data and software, Gordian’s offerings serve the entire building lifecycle and provide workflow solutions to optimise every stage of an asset owner’s construction and maintenance needs.
It has a strong history in the sector and developed the industry’s first procurement platform.
- Bentley Systems acquires London 4D construction modelling firm Synchro Software
- Bouygues Construction expands in Australia with AW Edwards acquisition
- Siemens Building Technologies boosts IoT capabilities with Enlighted acquisition
James Lico, President and Chief Executive Officer of Fortive, commented: “Gordian’s over 70 years of proprietary construction cost data and domain expertise and a seasoned management team created the industry standard in construction task data, workflow software and service.
“We look forward to working with the Gordian team to drive continued growth, innovation and value creation for customers across the facilities management ecosystem.”
Fortive, a $6.7bn company, expects Gordian to generate $130mn in revenue this year and will absorb it into its Field Solutions platform.
Alex Berzofsky, Managing Director of Warburg Pincus, added: “Gordian has established itself as the leading provider of facility and construction cost data, software and expertise.
“We have been pleased to support the company and its talented management team as the business has grown and filled a critical need in solving the challenges of those in construction with technology and insights.”
The acquisition will be subject to customary closing conditions, including regulatory approvals, and will be financed with available cash. The deal is expected to close in the third quarter of this year.
BT and Microsoft unveil strategic partnership
BT and Microsoft have launched a strategic partnership to accelerate innovation across enterprise voice, cyber security and industry-focused services in sectors from digital manufacturing to health.
BT has already been named one of the first development partners for Microsoft Operator Connect and Operator Connect Conferencing. The renewed agreement will allow BT to build on this relationship and offer its own branded global managed voice services directly through Microsoft Teams, with an approach that further enhances customer experience and creates new opportunities for growth.
The strategic partnership will build on BT’s existing portfolio of cyber security services built on Microsoft technology. It will see the companies push forward with the design and launch of a new generation of managed security services to enable and protect the modern collaborative workplace. BT will work closely with Microsoft to develop distinct security propositions to defend customers’ operations across the cloud as well as its own IT estate.
Sustainability and collaboration on digital skills are integral to the partnership. BT and Microsoft will work together on further enhancing sustainability credentials within their supply chains and join forces on promoting digital skills in the communities.
“BT and Microsoft are at the forefront of innovation in global digital platforms and connectivity that will take technology and communication beyond limits,” said Bas Burger, CEO of Global at BT and executive sponsor of BT’s partnership with Microsoft. “This partnership will ensure all of Microsoft’s solutions work ‘Best on BT’ and support both companies’ commitments to improving digital skills in the community.”
Omar Abbosh, corporate vice president of industry solutions at Microsoft, said: “BT can use Microsoft’s cutting-edge tools to develop new communications services that meet the needs and demands of today’s customers. By aligning our visions for communication, connectivity, security and digital technology, Microsoft and BT will support real growth for businesses across the world.”
Microsoft's vision is to transform construction and built environment businesses with design innovation, a supply chain you can control, and a connected, safer, more productive workforce.
Microsoft recently unveiled strong results for the quarter ending June 30:
- Revenue totalled $46.2 billion, up 21%
- Operating income was $19.1 billion, up 42%
- Net income was $16.5 billion, up 47%
- Diluted earnings per share was $2.17, up 49%
For the year, revenues totalled $168.1 billion (up 18%), operating income hit $69.9 billion (up 32%), net income was $61.3 billion GAAP and $60.7 billion non-GAAP, and increased 38% and 37%, respectively.
“We are innovating across the technology stack to help organizations drive new levels of tech intensity across their business,” said Satya Nadella, chairman and chief executive officer of Microsoft. “Our results show that when we execute well and meet customers’ needs in differentiated ways in large and growing markets, we generate growth, as we’ve seen in our commercial cloud – and in new franchises we’ve built, including gaming, security, and LinkedIn, all of which surpassed $10 billion in annual revenue over the past three years.”
In a trading update last month, BT reported profit after tax £2m, down £446m, due to a "one-off tax charge in the quarter to reflect the remeasurement of deferred tax balances following the enactment of the new UK corporation tax rate of 25% from April 2023".