- Acquisition adds complementary cloud-based software as a
service (SaaS) digital workplace management capabilities to Johnson
Controls' leading OpenBlue digital buildings software
portfolio
- FM:Systems' double-digit revenue growth and gross and
operating margins expected to be accretive to Johnson
Controls
- Significant synergies providing increased capabilities and
offerings from FM:Systems products to Johnson Controls
customers
CORK,
Ireland, July 17, 2023 /PRNewswire/ -- Johnson
Controls (NYSE: JCI), 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.
The added expertise of FM:Systems will
accelerate Johnson Controls' net zero building technologies
leadership.
"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.
INVESTOR
CONTACT:
|
MEDIA
CONTACTS:
|
Jim Lucas
|
Trent
Perrotto
|
Johnson Controls
|
Johnson
Controls
|
Direct: +1
651.391.3182
|
Direct: +1
202.834.6353
|
Email:
jim.lucas@jci.com
|
Email:
media@jci.com
|
|
Todd Fogarty
|
|
Accel-KKR
|
|
Direct: +1
917.992.1170
|
|
Email:
todd.fogarty@kekstcnc.com
|
Johnson Controls International plc Cautionary Statement
Regarding Forward-Looking Statements
Johnson Controls
International plc has made statements in this communication
regarding the acquisition of FM:Systems that are forward-looking
and therefore are subject to risks and uncertainties. All
statements in this document other than statements of historical
fact are, or could be, "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "may," "will," "expect," "intend," "estimate,"
"anticipate," "believe," "should," "forecast," "project" or "plan"
and terms of similar meaning are also generally intended to
identify forward-looking statements. However, the absence of these
words does not mean that a statement is not forward-looking.
Johnson Controls cautions that these statements are subject to
numerous important risks, uncertainties, assumptions and other
factors, some of which are beyond Johnson Controls' control, that
could cause the expected impact of the acquisition of FM:Systems to
differ materially from those expressed or implied by such
forward-looking statements, include, among others, risks related to
the ability to realize the anticipated benefits of the acquisition,
including the possibility that expected synergies will not be
realized or will not be realized within the expected time frame;
delays in the successful integration of FM:Systems and its
technologies; unfavorable reaction to the acquisition by customers,
competitors, suppliers and employees, disruption from the
transaction making it more difficult to maintain business and
operational relationships; significant transaction costs; and
unknown liabilities.
Other factors that could cause Johnson Controls' actual results
to differ materially from those expressed include, among others
risks included in the section entitled "Risk Factors" in Johnson
Controls' Annual Report on Form 10-K for the 2022 fiscal year filed
with the SEC on November 15, 2022,
which is available
at www.sec.gov and www.johnsoncontrols.com under
the "Investors" tab. The description of certain of these risks is
supplemented in Item 1A of Part II of Johnson Controls'
subsequently filed Quarterly Reports on Form 10-Q. Shareholders,
potential investors and others should consider these factors in
evaluating the forward-looking statements and should not place
undue reliance on such statements. The forward-looking statements
included in this communication are made only as of the date of this
document, unless otherwise specified, and, except as required by
law, Johnson Controls assumes no obligation, and disclaims any
obligation, to update such statements to reflect events or
circumstances occurring after the date of this communication.
About Johnson Controls
At Johnson Controls (NYSE:JCI),
we transform the environments where people live, work, learn and
play. As the global leader in smart, healthy and sustainable
buildings, our mission is to reimagine the performance of buildings
to serve people, places and the planet.
Building on a proud history of nearly 140 years of innovation,
we deliver the blueprint of the future for industries such as
healthcare, schools, data centers, airports, stadiums,
manufacturing and beyond through OpenBlue, our 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 and follow
@Johnson Controls on social platforms.
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.
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SOURCE Johnson Controls International plc