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Johnson Controls, a global leader for smart, healthy and sustainable buildings, has acquired FM:Systems, a leading digital workplace management and Internet of Things (IoT) solutions provider for facilities and real estate professionals.
The acquisition adds complementary cloud-based software as a service (SaaS) digital workplace management capabilities to Johnson Controls’ leading OpenBlue digital buildings software portfolio.
The base purchase price for the transaction is $455 million, plus additional payments to be made subject to the achievement of post-closing earnout milestones.
Johnson Controls Chairman and CEO George Oliver said: “FM:Systems’ powerful, predictive workplace management platform will build on our best-in-class building automation services, OpenBlue, to offer a one-stop solution that helps customers accelerate their digital transformation journey, improve building efficiency and reduce operational costs. Coupled with our building asset solutions, energy management offerings and global field network, this acquisition further differentiates Johnson Controls’ leadership in the fast-growing segment for autonomous and digitally enabled buildings.”
Headquartered in Raleigh, North Carolina, and owned by Accel-KKR, FM:Systems has more than 200 employees and 1,200 customers, representing more than 2.4 million users across 80 countries. The company has earned a loyal customer base, achieving a greater than 110 per cent average net revenue retention since 2020. An established leader in the digital workplace solutions industry, FM:Systems has had double-digit revenue growth with gross and operating margins that are accretive to Johnson Controls.
FM:Systems’ software products offer a range of solutions to make workspaces smarter, like space-scenario planning, asset management and facilities maintenance, supported by security protocols, floor plan scenario modelling, bi-direction integration with AutoCAD and Revit models, and advanced workplace analytics capabilities. Improving the experience of everyone inside, from visitors to occupants to building managers, its powerful sensors and analytics can help portfolio managers optimise space, realise greater cost savings, and help manage and report on indoor air and other environmental data in facilities as diverse as commercial real estate, hospitals, universities, and government buildings.
FM:Systems’ capabilities will further strengthen Johnson Controls OpenBlue suite of software, which uses cutting-edge artificial intelligence and digital twin technologies to improve building performance, while making buildings smarter and healthier for the planet. The added expertise of FM:Systems will accelerate Johnson Controls’ leadership in net zero building technologies globally, while strengthening long-term relationships with existing customers and creating new opportunities to meet demand in the fast-growing smart building segment.
FM:Systems CEO and Chairman Kurt von Koch will join Johnson Controls’ digital business in a leadership role.
