Johnson Controls announced it will pay at least $455 million to acquire FM:Systems, a North Carolina-based provider of workplace management technology.
The transaction includes undisclosed additional payments based on post-closing earnout milestones. Private equity firm Accel-KKR owned FM:Systems prior to the acquisition.
FM:Systems has 200 employees and 1,200 customers with more than 2.4 million users across 80 countries. The firm’s software includes space-scenario planning, asset management, facilities maintenance, floor scenario planning and workplace analytics.
“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,” said Johnson Controls Chairman and CEO George Oliver. “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.”
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 modeling, bi-direction integration with AutoCAD and Revit models, and advanced workplace analytics capabilities. The company’s sensors and analytics are said to help portfolio managers optimize space, realize 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.
The added expertise of FM:Systems is said to 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.
Centerview Partners LLC served as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Johnson Controls on the transaction. Moelis & Company LLC and Raymond James acted as financial advisors, and Goodwin Procter as legal advisor to FM:Systems.
