Johnson Controls acquires FM:Systems for $455m from Accel-KKR

Johnson Controls, a prominent figure in creating smart, healthy, and sustainable buildings, has purchased FM:Systems, a Raleigh-based company specializing in digital workplace management and Internet of Things (IoT) solutions for facilities and real estate.

The transaction, set at a base price of $455 million, could also involve additional payments subject to the attainment of post-closing earnout milestones.

FM:Systems, owned by Accel-KKR, currently employs over 200 individuals and caters to 1,200 customers worldwide, with a user base exceeding 2.4 million across 80 countries. The company has achieved a net revenue retention rate of over 110% since 2020, demonstrating robust growth and profitability, which is accretive to Johnson Controls.

Johnson Controls’ CEO, George Oliver, remarked that FM:Systems’ predictive workplace management platform will supplement their premier building automation services, OpenBlue, to offer an all-encompassing solution for customers. This combination will aid in streamlining digital transformation, improving building efficiency, and lowering operational costs.

Johnson Controls acquires FM:Systems from Accel-KKR. Photo courtesy of Raysonho @ Open Grid Scheduler/Scalable Grid Engine/Wikimedia Commons.

FM:Systems’ software products deliver comprehensive solutions for smart workspaces, ranging from space-scenario planning and asset management to facilities maintenance. Their advanced workplace analytics capabilities can assist portfolio managers in optimizing space, realizing cost savings, and managing indoor air and other environmental data across various facilities, including commercial real estate, hospitals, and universities.

The integration of FM:Systems will bolster the capabilities of Johnson Controls’ OpenBlue suite of software, which uses artificial intelligence and digital twin technologies for enhancing building performance.

The acquisition will expedite Johnson Controls’ advancement in net zero building technologies on a global scale, reinforcing long-term relationships with existing customers and opening up new opportunities in the rapidly growing smart building sector.

Accel-KKR’s Managing Director, Dean Jacobson, expressed his satisfaction with FM:Systems’ growth and innovation since their investment in 2017. Jacobson praised FM:Systems’ successful alignment with Johnson Controls OpenBlue’s digital capabilities, facilitating a shared vision of leading in the domain of autonomous and connected buildings. Johnson Controls has stated that this acquisition won’t impact their 2023 fiscal year financial outlook.