Fortive will buy software developer Accruent for US$2 billion.
Accruent's software is used by more than 10 clients to manage real estate, facilities, and assets, and the company expects to generate revenue of approximately $270 million in 2018, Fortive said in a statement.
(Reuters)- Industrial products manufacturer Fortive announced on Tuesday that it will buy software developer Accruent from private equity firm Genstar Capital for approximately $2 billion in cash.
Accruent's software is used by more than 10 clients to manage real estate, facilities, and assets, and the company expects to generate revenue of approximately $270 million in 2018, Fortive said in a statement.
According to Fortive, the agreement with Accruent will help the manufacturer create a technology portfolio comprised of connected devices, workflow, and data analytics enabled.
The deal should complement the strengths of Fluke Digital Systems, a Fortive unit, and the manufacturer's recent acquisition, the construction software developer Gordian.
Fortive will finance the deal with cash and borrowed funds. The transaction is expected to close in the third quarter and will increase Fortive's free cash flow and earnings in 2019.
UBS Investment Bank is Fortive's financial advisor, while Lazard is Genstar's advisor.
By Arjun Panchadar and Arunima Banerjee