Autodesk’s Acquisition of Innovyze
DEAL OVERVIEW
● Announcement date: Feb 24th 2021
● Industry: Software — Application
● Deal Value: $1 Billion
● Deal consideration: $1 billion net of cash subject to working capital and tax closing adjustments
● Acquirer advisors: Global law firm Hogan Lovells
● Target advisors: N/A
Company Details:
First Company: Autodesk
● Founded: 30th January 1982
● HQ: San Rafael, California, United States
● Market Cap: 68.79B
● EV: 69.96B
● Revenue (ttm): 3.89B
● EV/LTM EBITDA: 92.64
Brief overview of First company Company Details:
Autodesk is an American multinational software corporation that makes software products and services for architecture, engineering, construction, manufacturing, media, education, and entertainment industries. Autodesk became best known for AutoCAD (a computer aided design and drafting software), but now develops a broad range of software for design, engineering, and entertainment — and a line of software for consumers. Their Media and Entertainment division creates software for visual effects, colour grading, and editing as well as animation, game development, and design visualization.
Second Company: Innovyze
● Founded: 1996
● HQ: Portaland, Oregon, United States
● Number of Employees: 161
● Revenue: $23.3M (Estimate)
Innovyze offers modelling, simulation, and predicative analysis solutions to enable cost-efficient and sustainably designed water distribution networks, water collection systems, water and wastewater treatment plants, and flood protection systems. They are a global provider of wet infrastructure software solutions that make water and sewer systems smarter. For 35-years, Innovyze has been building innovative software for the water industry and is trusted by approximately 3,000 customers worldwide, including utility companies in many of the most populous cities across five continents, a majority of ENR’s top design firms, and leading environmental and engineering consultancies.
Strategic Rationale
This deal seems to make a lot of sense. Auto Desk acquiring Innovyze, a big player in the water market, gives them Immediate Scale and presence in the market and creates $1.7 Billion in new addressable TAM (Total Addressable Market) for Autodesk in infrastructure. This will give them a Global and diversified customer base with presence in 60+ countries, new customers will allow more opportunity to innovate.
Out of the 240 employees Innovyze had, 50% were in R&D. This Water Expertise and Strong R&D stands Autodesk in good stead in the water market that they are entering into. The acquisition should be merged efficiently and smoothly as it complements Autodesk’s infrastructure solutions.
According to Autodesk this acquisition helps it “to provide end-to-end solutions for design, construction, and now, operations of water infrastructure, enabling them to accelerate sustainable outcomes and help communities build resilience for the future”.
Autodesk further stated that “combining innovyze’s portfolio with its own design and analysis solutions, including Autodesk Civil 3D, Autodesk InfraWorks, and the Autodesk Construction Cloud, offers civil engineers water utility companies and water experts the ability to better respond to issues and improve planning”.
Autodesk’s president and CEO, Andrew Anagnost, commented “we can achieve a more sustainable planet, but we can’t do it without responsibly managing our use of water and securing its future”.
The deal was completed on March 31st 2021
By Samuel Miller
