Johnson Controls will pay at least $455 million to acquire FM:Systems, a North Carolina-based provider of workplace management technology.
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.
“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,” a Johnson Controls press release said of FM:Systems’ products.
While Johnson Controls has closed on the acquisition for a base price of $455 million, the deal includes undisclosed additional payments based on 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 chief executive officer 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.”
Private equity firm Accel-KKR owned FM:Systems prior to the acquisition.
“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 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.
