Portland construction software firm Viewpoint is being acquired by California-based Trimble Inc. in an all-cash deal valued at $1.2 billion.
The announced deal between publicly traded Trimble (Nasdaq: TRMB) and Viewpoint's owner, Bain Capital Private Equity, falls almost exactly four years to the day that Bain announced it was buying Viewpoint for $230 million. The Boston-based private equity firm stands to make $970 million from the deal.
The deal is scheduled to close in the third quarter of this year, subject to regulatory approvals.
Viewpoint makes software primarily to help large construction industry clients perform back office functions such as tracking, planning and spending. Last year, Viewpoint bought a major competitor that built a similar software suite but targets smaller organizations and subcontractors.
Once the deal closes, it will become part of Trimble’s Building and Infrastructure Segment. Trimble, based in Sunnyvale, Calif., generated $2.65 billion in revenue last year from its collection of hardware and software products for the construction industry.
Trimble said Viewpoint will complement a deal in February in which it acquired Florida-based construction program management software maker e-Builder.
“The construction industry is embarking on a major digital transformation, and together with Trimble we will further accelerate technology innovation and adoption to deliver even more value to our customers,” Viewpoint CEO Manolis Kotzabasakis said in a written statement. “This partnership is a perfect fit, as Trimble and Viewpoint share a common vision helping construction companies integrate operations across the office, team and field, improving project profitability, enhancing productivity, and effectively collaborating across the construction ecosystem.”
Trimble said Viewpoint is expected to generate about $200 million of non-GAAP revenue in 2019, with operating cash flow of more than $50 million and non-GAAP operating margin of more than 20 percent.
“The Viewpoint acquisition, in combination with the recent e-Builder acquisition, confirms Trimble leadership in the accelerating digital transformation of the construction industry,” Trimble CEO Steven Berglund said in a written statement. “The acquisitions are strategically significant and position us to play a unique and central market role in providing comprehensive enterprise and project solutions.”
Viewpoint has roughly 8,000 customers. Since taking the helm at Viewpoint, Kotzabasakis has talked frequently about the digital shift underway within the construction industry and how the Portland company can lead its customers through such transitions.
“We are pleased to have had the opportunity to work with the Viewpoint team to grow the business and to extend their leadership position globally, and we are confident Trimble will be a good home for Viewpoint and its employees and customers,” David Humphrey, a managing director at Bain Capital Private Equity, said in a written statement.
Viewpoint employed 750 people last year, the last time that it disclosed employment figures. Of those employees, 397 were located in Portland. Earlier this year, Kotzabasakis said the headcount in Portland is up 20 percent in the last 12 months.
