Market Overview

Fortive to Acquire Accruent for Approximately $2.0 Billion in Cash

Share:
  • Agreement to Acquire a Leading Provider of Facilities & Asset
    Management Software
  • Large Global Installed Base with Significant Recurring Revenue of ~70%
    in 2017
  • Further Advances Fortive's Digital Strategy of Connected Devices &
    IOT, Software Enabled Workflow and Data Analytics
  • Strong Financial Profile Expected to be Accretive to Free Cash Flow
    and Earnings in 2019
  • Long Runway for Future M&A within the estimated $7 Billion Total
    Addressable Facilities & Asset Management Software Market

Fortive Corporation ("Fortive") (NYSE:FTV) announced today that it has
entered into a definitive agreement with Genstar Capital to acquire
Accruent, a privately-held, leading provider of physical resource
management software for approximately $2.0 billion in cash. The
acquisition is subject to customary closing conditions, including
regulatory approvals, and will be financed with available cash and
proceeds from borrowings. Fortive also announced today the completion of
its acquisition of Gordian.

James A. Lico, President and Chief Executive Officer of Fortive, stated:
"We are excited to acquire a premium software asset of scale with strong
upsell and cross-sell capabilities across the resource management
ecosystem. The complementary strengths of Accruent, Gordian and Fluke
Digital Systems will create an industry-leading IOT portfolio consisting
of connected devices, software enabled workflows, and data analytics."

Accruent is a recognized leader in the physical resource management
industry, combining deep domain and industry capabilities with an
integrated, cloud-based framework that provides insights spanning the
full lifecycle of real estate, facilities and asset management. Accruent
serves over 10,000 global customers, and assures clients fulfill the
mission of their organization by extending the lifecycle of assets,
ensuring full compliance and reducing safety risks.

Mr. Lico continued, "Accruent's team of software veterans and
acquisition strategy have positioned the company for accelerated growth.
We look forward to working with the Accruent team to deliver an expanded
suite of solutions to meet the market's critical and growing needs."

The transaction is expected to close in the third quarter of 2018.
Fortive expects Accruent to generate approximately $270 million of
revenue in 2018. Upon closing, Accruent will become part of Fortive's
Field Solutions platform (comprising Fluke, Qualitrol, Industrial
Scientific and Gordian) within Fortive's Professional Instrumentation
segment.

ADVISORS

UBS Investment Bank served as financial advisor to Fortive on this
transaction. Kirkland & Ellis served as legal counsel to Fortive.

CONFERENCE CALL

Fortive will hold a conference call today at 8:30 am ET. The call and an
accompanying slide presentation will be webcast on the "Investors"
section of the website, www.fortive.com,
under "Events & Presentations." A replay of the webcast will be
available at the same location shortly after the conclusion of the
presentation.

The conference call can be accessed by dialing 844-443-2871 (toll-free
domestic) or 213-660-0916 (international); Conference ID: 7397087. A
replay of the call will be available until August 14, 2018 via telephone
starting approximately two hours after the call ends. Once available,
the replay can be accessed at 800-585-8367 (toll-free domestic) or
404-537-3406 (international); Conference ID: 7397087 or visit the
"Investors" section of the website under "Events & Presentations."

ABOUT FORTIVE

Fortive is a diversified industrial growth company comprised of
Professional Instrumentation and Industrial Technologies businesses that
are recognized leaders in attractive markets. With 2017 revenues of $6.7
billion, Fortive's well-known brands hold leading positions in field
instrumentation, transportation, sensing, product realization,
automation and specialty, and franchise distribution. Fortive is
headquartered in Everett, Washington and employs a team of more than
26,000 research and development, manufacturing, sales, distribution,
service and administrative employees in more than 50 countries around
the world. With a culture rooted in continuous improvement, the core of
our company's operating model is the Fortive Business System. For more
information please visit: www.fortive.com.

FORWARD-LOOKING STATEMENTS

Statements in this release that are not strictly historical, including
statements regarding the proposed acquisition, the anticipated timing
and terms of the acquisition, future product solutions, future financial
and operational impact or results of the acquisition, the anticipated
prospects of Accruent or the industry following the acquisition, future
growth opportunities following the acquisition, future cyclicality, and
any other statements regarding events or developments that Fortive
expects or anticipates will or may occur in the future, are
"forward-looking" statements within the meaning of the federal
securities laws. There are a number of important risks and uncertainties
that could cause actual results, developments and business decisions to
differ materially from those suggested or indicated by such
forward-looking statements and you should not place undue reliance on
any such forward-looking statements. These risks and uncertainties
include, among other things, the ability of the parties to satisfy the
conditions to the acquisition on a timely basis, the parties' ability to
complete the acquisition on the anticipated terms and schedule,
including the ability to obtain regulatory approvals, deterioration of
or instability in the economy, international trade policies, and the
financial markets, changes in trade relations with China, contractions
or lower growth rates and cyclicality of markets Fortive or Accruent
serves, competition, changes in industry standards and governmental
regulations, Fortive's ability to successfully integrate and realize the
anticipated value of Accruent's operations, the ability to realize
anticipated growth, synergies and cost savings, and Accruent's
performance and maintenance of important business relationships pending
closing of the acquisition. Additional information regarding the factors
that may cause actual results to differ materially from these
forward-looking statements is available in our SEC filings, including
our Annual Report on Form 10-K for the year ended December 31, 2017 and
our Quarterly Report on Form 10-Q for the quarters ended March 30, 2018
and June 29, 2018. These forward-looking statements speak only as of the
date of this release, and Fortive does not assume any obligation to
update or revise any forward-looking statement, whether as a result of
new information, future events and developments or otherwise.

With respect to the non-GAAP forwarding-looking statements on "Free Cash
Flow," Fortive is unable to provide a quantitative reconciliation to the
most directly comparable GAAP measure because the items that would be
reconciled are inherently difficult to predict and estimate due to their
unknown timing, effect and/or significance.

View Comments and Join the Discussion!