Nemetschek Acquires Belgium’s MCS Solutions for Building Management
MUNICH, Germany, Aug 29, 2018 – Software provider Nemetschek SE (ISIN 0006452907) acquired today 100% of the shares of MCS Solutions group, headquartered in Antwerp, Belgium. MCS Solutions offers an integrated and modular Integrated Workplace Management System (IWMS) that covers core functional areas in real estate, facility and workplace management for large private and public organizations. Additionally, MCS Solutions developed a sophisticated smart building platform COBUNDUTM which uses IoT sensors and big data analytics to optimize productivity and efficiency in both occupant experience and facility service delivery.
Leading position in a strongly growing market for building operations
Analyst firm MarketsandMarkets (www.marketsandmarkets.com) indicates over the next 5 years an addressable market of more than EUR 10 billion in annual customer spending with a CAGR of more than 10%. Building owners are investing in technology to drive significant cost benefits, simplified operations and maintenance, reduced energy use, and growing integration of IoT and smart buildings. By investing in Smart Building technology, owners can increase building efficiency, better satisfy the needs of occupants and differentiate their space in the competitive real estate market. The rapid consolidation of solution providers recently in the market signals the major shift in technology use that is accelerating.
In this changing landscape, MCS Solutions has become a well-known and well-respected player. MCS Solutions helps organizations improve real estate performance in terms of total cost, risk reduction, employee satisfaction, brand perception, and sustainability. MCS Solutions already serves over 1.5 million active users across the globe in more than 60 countries across many vertical industries, including private and public building owners, occupants, retail, commercial real estate, financial services, manufacturing, transportation and facility service providers.
MCS’s solutions are offered primarily as a subscription business model globally through direct sales and partnerships. The recurring revenues will continue to increase over the next years and will replace the traditional license model.
Perfect strategic addition
By acquiring MCS Solutions, the Nemetschek Group will enter this dynamically growing building operations management market. At the same time, Nemetschek will address a new customer group in den Manage segment and considerably extend its target markets beyond Design and Construction, where Nemetschek already has a leading market position. This makes Nemetschek the sole and worldwide leading software provider, providing key workflow offerings across the entire lifecycle of buildings.
“MCS Solutions is a perfect match for our solution portfolio that opens up a new market segment in which we will build to a leading market position as we have in BIM (Building Information Management) for Design and Construction. With the integration of MCS Solutions, we drive digitalization through the entire building process and are going to realize a seamless exchange of information before and, continuously, during the usage of a building,” says Patrik Heider, Spokesman and CFOO of the Nemetschek Group. “With the strong and global market position of MCS Solutions, we are taking on the role of being an innovator for the entire lifecycle of buildings.”
“For MCS, the acquisition means accelerated growth into international markets by benefiting from Nemetschek’s global customer and partner access, without changing its motivating culture and identity,” comments Koen Matthijs, CEO of MCS Solutions. “For our customers, it allows them to continue using our leading IWMS and Smart Building software while benefiting from increased integration with Nemetschek’s software solutions throughout the Building Lifecycle. “
Steven Lambert, COO of MCS Solutions, also adds: “We look forward to working closely with the other Nemetschek Group brands to make digital project information more transparent and easier to access by all parties in Design, Build, and Manage stages.” Both managers will stay in their roles after the acquisition.
MCS Solutions employs over 200 people. In addition to its headquarters in Antwerp, the company has 7 regional offices in Europe, USA, Middle East and APAC. MCS Solutions anticipates revenues amounting to around EUR 15 million for the year 2018. The purchase price for 100% of the shares represents a revenue multiple of between 3-3.5x.
About the Nemetschek Group
The Nemetschek Group is driving the digitalization of the building industry. With our software, architects, engineers, construction companies and facility managers can plan ahead, seamlessly share information and work together more closely. Building and infrastructure projects can thus be conducted more efficiently and sustainably. The unique holding structure provides our 15 strong brands with the flexibility to innovate in an entrepreneurial way while closely engaging with their 2.7 million customers worldwide. Founded by Prof. Georg Nemetschek in 1963, the company today employs more than 2,000 experts. Publicly listed since 1999 and quoted on the TecDAX, the company generated revenues of EUR 395.6 million and an EBITDA of EUR 108.0 million in 2017. For more information, visit www.nemetschek.com.
About MCS Solutions
MCS Solutions is a technology and consulting firm, supporting its clients across the globe to improve the performance of their building portfolios. Our core purpose is to make buildings work harder for their occupants by unlocking the power of building data. We help them create workplaces that offer the agility, flexibility, and connectivity needed to support new ways of working. And we assist our clients to optimize their facility operations and achieve bottom-line savings.
We believe technology solutions need to address real-world challenges and enable scenarios that quickly yield ROI. That is why our solutions are based on deep domain expertise in building management. Our suite of solutions is built from the ground up to be naturally integrated across domains. It is built on the latest IoT technologies to make buildings smarter in the way they work for their occupants.
MCS was founded in 1989, and currently employs 200 people across 7 locations. For more information, visit www.MCSsolutions.com.