Fortive Corporation (“Fortive”) (NYSE: FTV) announced that it has entered into a definitive agreement with Warburg Pincus to acquire Greenville, SC-based Gordian, a privately-held, leading provider of construction cost data, software and service. The acquisition will be subject to customary closing conditions, including regulatory approvals, and will be financed with available cash.
Since pioneering the industry’s first procurement platform, Gordian has expanded into cost estimating and facility planning workflow solutions across an extensive set of industry verticals. Gordian’s comprehensive offerings serve the entire building lifecycle and provide workflow solutions to optimize every stage of an asset owner’s construction and maintenance needs, including connecting the owner and contractors in the same exchange and providing access to cost and facilities metrics databases via a subscription-based model.
“We are excited to acquire an industry leader in the attractive, high-growth facilities maintenance and management segment,” said James A. Lico, President and Chief Executive Officer of Fortive. “The pending acquisition of Gordian advances our portfolio enhancement strategy to invest in software enabled workflows to increase our growth profile while reducing cyclicality.”
Mr. Lico continued, “Gordian’s over 70 years of proprietary construction cost data and domain expertise and a seasoned management team created the industry standard in construction task data, workflow software and service. We look forward to working with the Gordian team to drive continued growth, innovation and value creation for customers across the facilities management ecosystem.”
Alex Berzofsky, Managing Director of Warburg Pincus, stated: “Gordian has established itself as the leading provider of facility and construction cost data, software and expertise. We have been pleased to support the company and its talented management team as the business has grown and filled a critical need in solving the challenges of those in construction with technology and insights. We wish the team the best in their next step with Fortive.”
The purchase price for the acquisition is $775 million and the transaction is expected to close in the third quarter, 2018. Fortive expects Gordian to generate approximately $130 million of revenue in 2018. Upon closing, Gordian will become part of Fortive’s Field Solutions platform (comprising Fluke, Qualitrol, and Industrial Scientific) within Fortive’s Professional Instrumentation segment.