CORK, Ireland, July 18, 2023 – Johnson Controls, the 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 base purchase price for the transaction is $455 million, plus additional payments to be made subject to the achievement of post-closing earnout milestones.
“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, headquartered in Raleigh, North Carolina, and owned by Accel-KKR, 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% 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.
“Workplace management technology is a key enabler in terms of improving operational efficiency, creating safer, healthier and smarter buildings, and supporting sustainability goals. Since our investment in 2017, FM:Systems has become a leader in this space with continued innovation and service excellence, leading to a strong growth profile,” said Dean Jacobson, managing director at Accel-KKR. “We are proud of the success accomplished together with the talented team at FM:Systems, and we are pleased to see how well FM:Systems fits into and expands Johnson Controls OpenBlue digital capabilities in pursuit of a shared vision to lead in the future of autonomous and connected buildings.”
FM:Systems’ innovative 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. Improving the experience of everyone inside, from visitors to occupants to building managers, its powerful sensors and analytics can 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.
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. Buildings collectively account for nearly 40% of global greenhouse gas emissions. 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.
The acquisition is not expected to impact Johnson Controls’ 2023 fiscal year financial outlook.
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.
About Johnson Controls
Johnson Controls is the global leader in smart, healthy and sustainable buildings. Building on a proud history of nearly 140 years of innovation, they deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, their comprehensive digital offering.
Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.
Visit www.johnsoncontrols.com for more information.
About FM:Systems
FM:Systems’ all-in-one workplace management platform helps more than 1,200 of the world’s largest organizations access, manage and measure every aspect of their real estate portfolio. With the most complete range of intuitive and scalable space management, hybrid work, workplace analytics and smart sensor solutions, FM:Systems helps customers gain the data-backed clarity and vision necessary to make strategic real estate decisions and deliver high-performance workplaces today and long into the future.