Why Autodesk Just Spent $1.15 Billion On Two Construction Tech Startups

Why Autodesk Just Spent $1.15 Billion On Two Construction Tech Startups

Autodesk’s construction software business is getting its second acquisition-fueled jolt of the past few weeks. The company announced on Thursday that it is acquiring startup BuildingConnected for $275 million.

The acquisition of BuildingConnected comes exactly one month after Autodesk announced plans to acquire PlanGrid, another construction tech startup, for $875 million in November (the deal closed today). Together, the two acquisitions mean San Rafael, California-based Autodesk has paid $1.15 billion in a month for the startup companies.

Shares in Autodesk were trading down 2% at $125.55 as of 3 p.m. ET amid a general market sell-off.

Acquiring BuildingConnected and PlanGrid, both based in San Francisco, pours some fuel on the fire of Autodesk’s strategy under CEO Andrew Anagnost to focus on construction as its top priority market for software development in recent months. Late to the shift to digital technology, construction is now a fast-growing category for software tools, with some estimates expecting the construction software market to reach $10 billion by 2020.

“We are trying to completely digitize the construction process all the way from design to build,” Anagnost tells Forbes. “With the completion of [the purchase of] BuildingConnected, we feel we have acquired all the important assets we need to acquire.” Read more

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