Siemens Intelligent Infrastructure (IS), the leader in digital buildings, has signed an agreement to acquire Brightly Software, a leading US software-as-a-service (SaaS) provider of asset and maintenance management solutions. The acquisition elevates SI to a leading position in the software market for buildings and built infrastructure. The purchase price is $1.575 billion, plus an earn-out.
The acquisition will add Brightly’s well-established cloud capabilities in key sectors – education, public infrastructure, healthcare and manufacturing – to Siemens’ digital and software know-how in buildings. It also accelerates the development of Siemens’ SaaS business and enables Siemens and Brightly to jointly deliver superior performance and sustainability for built infrastructure. Brightly is expected to benefit from Siemens’ global presence, while Siemens benefits from the software provider’s presence in the US market. Siemens will realize significant synergies between Brightly’s capabilities and its own portfolio with an expected net present value in the triple digits in the millions. The transaction is subject to regulatory approvals, with expected closing in calendar year 2022. The acquisition will be accretive to pre-PPA EPS in the second year after closing.
“This is another important step in our strategy as a focused technology company. By combining the real and digital worlds, we provide our clients with the technology to drive their digital transformation to create the most sustainable and human-centric buildings. Today’s acquisition reinforces our growth objectives, particularly for digital revenue and software as a service. We are proud and delighted to warmly welcome Brightly to the Siemens family,” said Roland Busch, President and CEO of Siemens AG.
Infrastructure owners and operators are increasingly looking for software that supports more efficient and sustainable operations. Brightly’s well-established SaaS business and customer base, combined with Siemens’ existing building base and digital portfolio, will facilitate data integration through IT and OT convergence, supporting innovation, unique user experiences and optimized performance for buildings and built infrastructure.
“Brightly will allow us to take building performance to the next level. With seamless data exchange between our offerings, our customers can expect increased efficiency, reduced downtime and maintenance costs, shorter lifecycles, better data and happier tenants,” said Matthias Rebellius, Board Member of Siemens AG and CEO of Intelligent Infrastructure. “The acquisition will accelerate our goal of becoming a leading software company also in the infrastructure space and will support our vision of creating fully autonomous buildings that constantly learn and adapt to the needs of their tenants.”
It is estimated that 7 billion people will live in urban areas by 2050. This trend, coupled with the urgency to address climate change, highlights the need for smart and sustainable communities and infrastructure. Siemens strives to create smart communities, enabled by digitalization and smart systems. The company’s solutions, services and software connect the real and digital worlds, as well as IT and OT, injecting intelligence into built infrastructure operations.
For 2022, Brightly expects to achieve revenue of approximately $180 million. The expected annual recurring revenue (ARR) for 2022 is USD 160 million. Brightly operates in a market that is growing at a CAGR of 13%. The company is headquartered in Cary, North Carolina, and has approximately 800 employees serving approximately 12,000 customers, primarily in the United States, Canada, United Kingdom and Australia. The company has been owned by private equity firm Clearlake Capital since 2019.
“With digital transformation and sustainability at the top of the agenda, coupled with a challenging regulatory environment, the need for connected assets and real-time asset data is driving increased demand for intelligent asset management solutions across the globe. “said Kevin Kemmerer, CEO of Brightly. “We see an incredible opportunity to combine our knowledge and software with Siemens to accelerate the digitization and optimization of the built environment. Helping clients assess and manage their collective assets, develop short and long-term investment plans, and manage energy and ESG goals. Together, we have the experience to help our customers around the world transform the performance of their assets and create safe, sustainable and thriving communities.”
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