Autodesk acquired construction software startup PlanGrid for $875 million
As we reported this morning, $27 billion Autodesk has just acquired the Google and Sequoia-backed construction-startup PlanGrid for $875 million. The acquisition will enable Autodesk to offer a more comprehensive, cloud-based construction platform. The San Francisco, CA-based startup was backed by investors GV (formerly Google Ventures), Sequoia Capital and Founders Fund and was last valued at $419 million in a 2015 Series B. The transaction is expected to close sometime in AutoDesk’s fiscal fourth quarter, which ends Jan. 31, 2019.
PlanGrid was founded in 2011 by Kenny Stone, Ralph Gootee, Ryan Sutton-Gee, and Tracy Young. Its cloud-based construction productivity software helps owners, general contractors, subcontractors in commercial, heavy civil and other industries collaborate throughout the construction project lifecycle. PlanGrid software offers real-time collaboration, keeping the field and the office on the same page. It gives builders real-time access to project plans, punch lists, project tasks, progress photos, daily field reports, submittals and more.
“As designing and making converge, Autodesk is connecting project data from design through construction and putting predictive insights into the hands of contractors,” said Andrew Anagnost, Autodesk CEO. “There is a huge opportunity to streamline all aspects of construction through digitization and automation. The acquisition of PlanGrid will accelerate our efforts to improve construction workflows for every stakeholder in the construction process.”
“At PlanGrid, we have a relentless focus on empowering construction workers to build as productively as possible,” said Tracy Young, PlanGrid CEO. “One of the first steps to improving construction productivity is the adoption of digital workflows with centralized data. PlanGrid has excelled at building beautiful, simple field collaboration software, while Autodesk has focused on connecting design to construction. Together, we can drive greater productivity and predictability on the jobsite.”
Founded in 1982 by John Walker, Autodesk develops 3D design software for use in the architecture, engineering, construction, and media industries. It offers AutoCAD software, a computer-aided design application for professional design, drafting, detailing, and visualization; AutoCAD LT, a professional drafting and detailing software; Autodesk Building Design Suites to manage various phases of design and construction, and several other software products. It’s also the developer of the popular Autodesk Lustre software applications that offer editing, finishing, and visual effects design and color grading solutions.
“This acquisition allows us to do more for general contractors, and we’ve got new growth opportunities with subcontractors and owners. We’ll integrate workflows between PlanGrid’s software and both Autodesk Revit software and the Autodesk BIM 360 construction management platform, for a seamless exchange of information between all project members,” Jim Lynch, Construction General Manager at Autodesk, said.
In a separate blog post on their website, Tracy Young, CEO and Cofounder of PlanGrid said: “It’s been a while since I’ve had the opportunity to personally reach out to our growing community of more than 12,000 customers in 85 countries around the world. Today, I’m proud to announce and share with you that Autodesk will be acquiring PlanGrid.”
She said that the combined expertise of Autodesk and PlanGrid we will substantially fast track their joint vision of helping close the construction labor productivity gap with technology. “Our mission has always been to build simple, beautiful software that you and your construction teams love to use. With the combined expertise of Autodesk and PlanGrid we will substantially fast track our joint vision of helping close the construction labor productivity gap with technology,” Young said.