July 2, 2018
EVERETT, Wash — Fortive Corporation (“Fortive”) (NYSE: FTV) announced today that it has entered into a definitive agreement with Warburg Pincus and Education Growth Partners to acquire Gordian, a privately-held, leading provider of construction cost data, software and industry-leading services support.
Since pioneering the industry’s first procurement platform, Gordian has expanded into cost estimating and facility planning workflow solutions across an extensive set of industry verticals. Gordian’s comprehensive offerings serve the entire building lifecycle and provide workflow solutions to optimize every stage of an asset owner’s construction and maintenance needs, including connecting the owner and contractors in the same exchange and providing access to cost and facilities metrics databases via a subscription-based model. Further, Gordian has developed an exceptional services expertise that ensures that customers reap the maximum benefit from Gordian’s proprietary data solutions.
James A. Lico, President and Chief Executive Officer of Fortive, stated: “We are excited to acquire an industry leader in the attractive, high-growth facilities maintenance and management segment. The pending acquisition of Gordian advances our portfolio enhancement strategy to invest in software enabled workflows to increase our growth profile while reducing cyclicality.”
Mr. Lico continued, “Gordian’s over 70 years of proprietary construction cost data and domain expertise and a seasoned management team created the industry standard in construction task data, workflow software and service. We look forward to working with the Gordian team to drive continued growth, innovation and value creation for customers across the facilities management ecosystem.”
Alex Berzofsky, Managing Director of Warburg Pincus, stated: “Gordian has established itself as the leading provider of facility and construction cost data, software and expertise. We have been pleased to support the company and its talented management team as the business has grown and filled a critical need in solving the challenges of those in construction with technology, data, services, and insights. We wish the team the best in their next step with Fortive.”
Peter Campbell, Managing Generally Partner of Education Growth Partners, added “We were very excited to get involved with Gordian when they acquired our portfolio company Sightlines and have been excited to see the growth of the combined business. We believed that Sightlines data and facilities planning services, along with Sightline’s management team, would help Gordian continue to drive customer value and ultimately, strong financial results.”
The purchase price for the acquisition is $775 million and the transaction is expected to close in the third quarter, 2018. Fortive expects Gordian to generate approximately $130 million of revenue in 2018.
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.
ABOUT WARBURG PINCUS
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $45 billion in private equity assets under management. The firm’s active portfolio of more than 165 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 17 private equity funds which have invested more than $68 billion in over 820 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information, please visit www.warburgpincus.com.
ABOUT EDUCATION GROWTH PARTNERS
Education Growth Partners is a private equity firm dedicated to providing growth capital to proven, high potential human development and workplace companies. The industry expertise and extensive operating experience of Education Growth Partners’ team ensures its companies receive an infusion of highly strategic capital and insight that can accelerate their reach, scale and impact to create long-term value. For more information, please visit: www.edgrowth.com.