{"id":111740,"date":"2022-06-13T07:00:36","date_gmt":"2022-06-13T06:00:36","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=111740"},"modified":"2022-06-10T16:46:46","modified_gmt":"2022-06-10T15:46:46","slug":"merger-acquisition-bim-software-market-new-innovations","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/digital-construction-news\/bim-news\/merger-acquisition-bim-software-market-new-innovations\/111740\/","title":{"rendered":"How is M&A activity in the BIM software market driving new innovations?"},"content":{"rendered":"

David Land, senior consultant, Cambashi<\/a>, explores how merger & acquisition activity in the BIM software market is driving new innovations<\/h2>\n

The construction industry was already starting to experience disruption before the global pandemic. As the effects of the pandemic have unfolded, there has been a significant increase in corporate restructuring and merger and acquisition (M&A) activity.<\/p>\n

BIM Design,<\/a> which includes software used in the design of building and infrastructure projects, has been a well-developed space over many years. Now many of the BIM Design providers have expanded into the areas of BIM Construct \u2013 which covers software for collaboration on planning and building \u2013 and BIM Operate, which includes facilities management software, so they can offer a complete BIM lifecycle on their own, or via partnerships.<\/p>\n

There has been a clear convergence between the software vendors within the BIM Construct and BIM Operate market areas, with partnerships and acquisitions enabling larger players to gain access across the entire BIM lifecycle.<\/p>\n

So, what are the key trends? Who are the \u2018movers and shakers\u2019 in the BIM software market?<\/h3>\n

Autodesk<\/strong> is certainly the biggest Design player and has been building up the BIM Construct sector over the last several years. Obviously, the bigger players want to dominate as much as they can organically and acquire other providers to enable them to go into new technologies, or take new approaches, or acquire customers to fill the gaps where they need to.<\/p>\n

Autodesk is showing interest in completing its full BIM Lifecycle from Design-Build-Operation after a large acquisition run, building up its Construct products, acquiring PlanGrid<\/strong>, Assemble Systems<\/strong>, and BuildingConnected <\/strong>(for around $850million, undisclosed and $275million respectively).<\/p>\n

In January 2022 Autodesk added ProEst<\/strong>, a cloud-based estimating solution that enables construction companies to create estimates, perform digital take-offs, generate reports and proposals and manage bid-day processes.<\/p>\n

It has also increased its coverage in civil engineering within the water infrastructure market by acquiring Innovyze<\/strong> for approx. $1billion in 2021 to help position itself as one of the leading global providers of end-to-end digital solutions and to accelerate its digital twin strategy.<\/p>\n

Another key market player Nemetschek<\/strong><\/a> acquired MCS Solutions<\/strong> and Axxerion<\/strong> to create Spacewell<\/strong>, a brand designated to focus on the BIM Operate Market and complement its BIM Construct Brands, such as Nervaris<\/strong> and Solibri<\/strong><\/a>. Nemetschek has also continued to build strength in BIM due to ongoing digitalisation of construction and a more mixed outlook for \u2018Manage\u2019 software. The company showed TAM (total addressable market) share and penetration<\/a>, estimated based on Cambashi BIM data<\/a>.<\/p>\n

At the brand level, FRILO Software <\/strong>successfully completed the acquisition of the software company DC-Software Doster & Christmann <\/strong>in April 2022. This acquisition will help FRILO to strategically expand its product portfolio in the foundation engineering segment.<\/p>\n

Large BIM Operate players such as MRI<\/strong> have also been on an acquisition spree, hoovering up many of the smaller BIM Operate vendors to create one of the largest portfolios in the sector. This includes buying assets from other BIM providers such as Trimble<\/strong> (e.g. Manhattan<\/strong>), which is moving out of this area to focus on its core Connected Construction capabilities within the BIM Construction area.<\/p>\n

MRI recently signed a partnership with Procore Technologies<\/strong><\/a>, a BIM Construct provider which went through an IPO this year and is performing well. This partnership will help both companies offer a wider portfolio, connecting project management and accounting with adjacent software sets that can be used in different parts of the BIM workflow.<\/p>\n

Archibus<\/strong> (now Space IQ<\/strong>) also went on a buying spree, acquiring SpaceIQ<\/strong>, Serraview<\/strong> and iOFFICE<\/strong>, the latter having recently received an investment from Autodesk<\/strong>. We anticipate a closer alignment between these companies’ portfolios in the future.<\/p>\n

Other recent acquisitions include:<\/p>\n