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Fortive Corporation has entered a definitive agreement to acquire SaaS provider ServiceChannel for $1.25 billion. The deal is likely to close in the third quarter of 2021
Fortive Corporation, a technology provider for connected workflows, has signed a definitive agreement to acquire ServiceChannel, a leading SaaS-based multi-site facilities maintenance service provider. The deal, approximately worth $1.2 billion, would primarily be funded with available cash, Fortive said in a press release.
ServiceChannel, founded in 1999, offers a cloud-based service automation platform for facility maintenance and repairs. Its SaaS offering helps multi-site owners and operators automate entire workflow life cycles, including maintaining and repairing their properties and related assets, work order management, asset tracking, and service provider tracking.
James A. Lico, president and CEO of Fortive, stated that ServiceChannel fits well alongside Accruent and Gordian (Other acquisitions of Fortive) and would offer a range of software-enabled solutions for facility and asset lifecycle workflows.
This transaction is another great example of how we continue to use disciplined capital deployment to accelerate our long-term strategy across our segments. ServiceNow’s high-growth SaaS platform, leading contractor network, rich data assets, and existing global footprint would be beneficial to the long-term growth and profitability of IOS.James A. Lico, president and CEO of Fortive
Fortive expects ServiceChannel’s revenue in 2021 to touch $125 million. ServiceChannel would function as an independent company within Fortive’s Intelligent Operating Solutions segment, post the acquisition close, expected to be in 2021 Q3, Fortive said.
Tom Buiocchi, executive director and CEO of Service Channel, opined that ServiceChannel had successfully established a leading position concerning solving challenges for facilities owners and operators for over twenty years. Commenting on the acquisition, Mr. Buiocchi said,
With a range of highly complementary assets and significant resources to support future organic and inorganic growth opportunities, Fortive is the perfect partner to support ServiceChannel in the next leg of our journey.Tom Buiocchi, executive director and CEO of Service Channel
Alongside the acquisition news, Fortive announced its revenue estimates for this year’s second quarter. Its estimates state that the revenue growth would be approximately 25 percent, with core revenue touching a 20 percent growth.
We are incredibly proud of the strength that we demonstrated in Q2. These preliminary results, along with the acquisition of a high-quality company like ServiceChannel, put us in a great position for the remainder of 2021 and 2022. We look forward to sharing more details on our earnings call on July 29th, 2021James A. Lico, president and CEO of Fortive