Autodesk, on Tuesday, announced plans to acquire construction productivity software startup PlanGrid for $875 million. The move is intended to strengthen Autodesk’s cloud-based construction platform while helping PlanGrid achieve its vision of digitizing construction blueprints.
Founded in 2012, PlanGrid’s mobile construction management software gives builders real-time access to blueprints, drawings, punch lists, and other construction fits from wherever you are. Autodesk intends to integrate PlanGrid's software to its Autodesk Revit and Autodesk BIM 360 Construction Management Platform.
“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,” said Andrew Anagnost, CEO of Autodesk.
PlanGrid co-founder and CEO, Tracy Young said about the acquisition – “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 job site.” PlanGrid raised just $69 million in a funding from Sequoia Capital and Tenaya Capital. The company was best known for its mobile construction app and was the largest repository in the world for digital blueprints, with over 50 million blueprint sheets in PlanGrid's cloud, the CEO said.
The deal signaled Wall Street enthusiasm as Autodesk’s shares rose 6.9% in after-hours trading to $131.48. The acquisition is expected to close at the end of January, during Autodesk’s fourth quarter of fiscal 2019.