July 6, 2022
Siemens Smart Infrastructure (SI) has signed an agreement to acquire Brightly Software, a leading U.S.-based software-as-a-service (SaaS) provider of asset and maintenance management solutions. The acquisition elevates SI to a leading position in the software market for buildings and built infrastructure. The purchase price is USD 1.575 billion, plus an earn-out. The acquisition will add Brightly’s well-established cloud-based capabilities across key sectors – education, public infrastructure, healthcare, and manufacturing – to Siemens’ digital and software know-how in buildings. It also accelerates the build-up of Siemens’ SaaS business and enables Siemens and Brightly together to deliver superior performance and sustainability for built infrastructure. Brightly is expected to benefit from Siemens’ global presence, while Siemens leverages the software provider’s footprint in the U.S. market. Siemens will realize significant synergies between Brightly’s capabilities and its own portfolio with an expected mid-triple-digit million net present value. The transaction is subject to regulatory approvals, with closing expected in calendar year 2022. The acquisition will be EPS accretive pre-PPA in the second year after closing.
“This is another important step in our strategy as a focused technology company. By combining the real and digital worlds, we provide our customers with the technology required to drive their digital transformation to create the most sustainable and human-centric buildings. Today’s acquisition bolsters our growth targets, especially for digital revenue and software as a service. We are proud and excited to warmly welcome Brightly to the Siemens family,” said Roland Busch, President and CEO of Siemens AG.
Infrastructure owners and operators are increasingly looking for software that supports more efficient and sustainable operations. Brightly’s well-established SaaS business and customer base, combined with Siemens’ existing building base and digital portfolio, will facilitate data integration through IT and OT convergence, supporting innovation, unique user experiences and optimized performance for buildings and built infrastructure.
“Brightly will enable us to leapfrog to the next level of performance for buildings. With seamless data exchange between our offerings, our customers can expect enhanced efficiency, lower downtimes and maintenance costs, shorter lifecycles, better data-driven decisions and more satisfied tenants,” said Matthias Rebellius, Member of the Managing Board of Siemens AG and CEO of Smart Infrastructure. “The acquisition will speed up our target of becoming a leading software company also in infrastructure and support our vision of creating fully autonomous buildings that continuously learn from and adapt to the needs of their tenants.”
It is estimated that 7 billion people will live in urban areas by 2050. This trend, coupled with the urgency of tackling climate change, highlight the need for smart and sustainable communities and infrastructure. Siemens strives to build smart communities, enabled by digitalization and intelligent systems. The company’s solutions, services, and software connect the real and digital worlds, as well as IT and OT, injecting intelligence into operations of built infrastructure.
For 2022, Brightly expects to achieve revenues of around USD 180 million. The expected annual recurring revenue (ARR) for 2022 is USD 160 million. Brightly operates in a market that is growing at a CAGR of 13 percent. The company is headquartered in Cary, NC, and has around 800 employees serving around 12,000 customers, mainly across the U.S., Canada, U.K. and Australia. The company has been owned by private equity firm Clearlake Capital since 2019.
“With digital transformation and sustainability high on agendas, coupled with a challenging regulatory environment, the need for connected assets and real-time asset data is driving greater demand for intelligent asset management solutions across the globe,” said Kevin Kemmerer, Chief Executive Officer at Brightly. “We see an incredible opportunity to combine our knowledge and software with Siemens to accelerate the digitization and optimization of the built environment. Helping customers assess and manage their collective assets, build short- and long-term capital plans and manage energy and ESG goals. Together, we have the experience to help clients across the world transform the performance of their assets and create safe, sustainable and thriving communities.”