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TRIMBLE BUYS VIEWPOINT Featured

 Steve Berglund, TrimbleConsolidation in the construction software industry took a big step this week with Trimble’s acquisition of Viewpoint. Trimble, which is paying $1.2 billion in cash to buy Viewpoint from Bain Capital, expects to soon have an annual run rate of more than $1 billion in the construction market.

Viewpoint and another recent Trimble acquisition, e-Builder, will continue to operate separately. “Each of the businesses has a focus on different parts of the market,” Trimble CEO Steven Berglund said during this week’s webcast. Viewpoint was in the middle of its own M&A with the purchase of the former Dexter+Chaney in August and Keystone Data Solutions earlier this month. Berglund said construction is increasingly moving towards one-stop shopping. In its most recent year, Trimble reported net income for 2017 of $121.2 million, down from $132.2 million for 2016. It had $2.65 billion revenue for 2017, an increase of 12.4 percent from $2.36 billion the prior year. Trimble expects for 2019 Viewpoint will produce $200 million in revenue and $50 million in operating cash flow, both non-GAAP figures. The acquired company’s recurring revenue is 70 percent of total and it has retention rates of more than 95 percent. The cash purchase will be generated by debt and Trimble will be pulling back from large acquisitions and is suspending a stock buyback in taking steps to de-lever.

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