Blog Exposure - Trimble Acquires Construction Software Firm e-Builder for $500 Million
Stock Monitor: II-VI Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 06, 2018 / Active-Investors.com has just released a free research report on Trimble Inc. (NASDAQ: TRMB). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TRMB as the Company's latest news hit the wire. On January 02, 2018, Trimble, a company that is transforming the way the world works by delivering products and services that connect the physical and digital worlds, declared that it has acquired e-Builder, a Florida-based privately held company that provides SaaS-based construction program management solutions for capital program owners and program management firms. E-Builder's acquisition would enhance Trimble's ability to accelerate industry transformation by providing an integrated project delivery solution for owners, program managers as well as contractors across the design, construct and operate lifecycle. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Post the acquisition, the e-Builder business will be reported as part of Trimble's Buildings and Infrastructure segment.
About the e-Builder Solution
Florida-based e-Builder is the leading provider of integrated, cloud-based construction program management software for top facility owners, and the companies that act on their behalf. Its flagship product, e-Builder Enterprise, is very popular in the industry as it improves capital project execution, which further results in increased productivity and quality, reduced cost, and faster project delivery. Since its inception in 1995, e-Builder has helped numerous global companies, government agencies, and health care and educational institutions manage their capital programs with solutions to improve the plan, build and operate lifecycle.
At present, the Company manages more than 200,000 projects and over $300 billion of construction project value for majority of the most influential owners in North America. The e-Builder solution has been specifically designed to measure and manage every step of the capital project delivery process including planning, design, procurement, construction and operations. It benefits owners through improved transparency and accountability, and contractors through faster payments, increased productivity, and improved competitive advantage.
Trimble's Presence in the Construction Space
Trimble is transforming industries such as agriculture, construction, geospatial, and transportation and logistics through its purpose-built products as well as enterprise lifecycle solutions. In the construction sector, Trimble offers a wide range of construction hardware and software solutions that optimize project cost, schedule, and effectiveness, which in turn, benefits owners, architects, engineers as well as contractors. Trimble solutions leverage constructible Building Information Model (BIM) workflows to integrate processes, improve information fidelity, reduce rework, establish transparency, and deliver higher productivity. Thus, contractors and owners achieve significant reductions in cost by using Trimble solutions.
Trimble is present in the construction industry in two segments - civil engineering projects and in the construction of buildings and structures. Both these segments will gain from the acquisition of e-Builder.
Combined Solution to Benefit Owners as well as Contractors
The combination of Trimble and e-Builder would create value for owners as well as contractors by bringing together e-Builder's best practice solutions for owners with Trimble's construction lifecycle solutions, access to contractors, and global reach. Moreover, the combined solution portfolio will ensure additional productivity gains by accelerating the integration of field operations with enterprise needs. The tangible benefits for owners and contractors comprise more consistent on time and within-budget project delivery enabled by improved visibility, clear accountability for outcomes, and the ability to convert large volumes of disparate data into actionable workflows and measurable outcomes.
Acquisition to Extend Trimble's Presence in the Owner-focused Construction Management Software Market
E-Builder has always acknowledged the role of owners in the construction lifecycle. The Company recognizes that owners' influence is key to the adoption of transformative construction technology. Trimble intends to extend its reach into the owner community with the acquisition of e-Builder. Besides, Trimble also plans to aggressively introduce e-Builder solutions to civil and building contractors and the international market. There is an enormous opportunity in leveraging data and intelligence gained through design-construct workflows across the full infrastructure lifecycle.
An Expansion Opportunity for e-builder
Jon Antevy, the co-founder of e-Builder, looks at this deal as a chance to expand the Company's market share across the construction industry. Ron Antevy, the President and CEO of e-Builder, added that the addition of e-Builder solutions to Trimble's broad portfolio would enhance their collective ability to support owners and contractors with project delivery and management. The current as well as future customers of e-Builder will benefit from Trimble's construction management expertise, culture of innovation as well as global reach.
Financial Implications of the Acquisition
Trimble has agreed to purchase e-Builder for $500 million in cash. It intends to fund this transaction through its existing cash and a new $300 million credit facility, which has terms and conditions similar to the existing revolver with a 364-day term.
E-Builder's reported trailing twelve-month revenue is approximately $53 million. The Company's revenue has grown at a rate of more than 20% annually in the last few years, wherein subscription revenue accounts for over 65% of the total revenue. Trimble expects the transaction to be dilutive to its first quarter non-GAAP net income per share by $0.01 per share and dilutive to full year 2018 non-GAAP net income per share by $0.02 to $0.03 per share, owing to the impact of fair value accounting of e-Builder's deferred revenue and interest expense. Trimble also expects the acquisition to be accretive to 2019 non-GAAP net income per share.
Stock Performance Snapshot
February 05, 2018 - At Monday's closing bell, Trimble's stock dropped 6.13%, ending the trading session at $40.59.
Volume traded for the day: 1.57 million shares, which was above the 3-month average volume of 925.36 thousand shares.
Stock performance in the last three-month – up 2.01%; previous six-month period – up 7.52%; and past twelve-month period – up 34.14%
After yesterday's close, Trimble's market cap was at $10.39 billion.
Price to Earnings (P/E) ratio was at 53.69.
The stock is part of the Technology sector, categorized under the Scientific & Technical Instruments industry.
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