What Follows an Acquisition?
Contractors that have been following the tech space closely realize Trimble, www.trimble.com, Sunnyvale, Calif., has its hand in the acquisition pot, but what truly comes following an acquisition?
The company has acquired Meridian Systems, QuickPen, Accubid Systems, Tekla, Trade Service, SketchUp, WinEstimator, Vico Software, Manhattan Software, and Gehry Technologies. That is a long list—especially considering those are only the companies that impact BIM (building information modeling) in the construction industry.
Many may remember one of the first big acquisitions Trimble made was when it acquired Meridian Systems in 2006. For years following the acquisition, Meridian operated independently, however the company did eventually become a part of Trimble. Even though Meridian is now a part of Trimble, the company still introduces updates to Proliance and Prolog regularly.
I bring this example up because Trimble announced at the beginning of December that Tekla is in the process of transition to a Trimble brand. This doesn’t come as a surprise to our editorial staff here at Constructech. It is pretty standard practice for Trimble to acquire a company, allow it to operate independently, and then ultimately transition it to a Trimble brand. Some make the transition sooner than others.
In the case of Tekla, which was acquired in 2011, Trimble plans to make the transition on Jan. 1, 2016. With the transition, Trimble says customers can expect the same continued innovation and best-in-class support and service as they currently receive. Tighter integration will ultimately enhance the ability to integrate data throughout a project lifecycle, while eliminating costs through better accuracy and interoperability.
In an article title The Perfect Storm for the March/April 2013 issue of Constructech magazine, which focused on the impact of M&As for construction, I spoke with John Bodrozic about what contractors really need to keep in mind following an acquisition.
While he has held many positions in the past decade, he might perhaps be best known for his former role as president of Meridian Systems. His advice to contractors is to try to understand the vision of the acquiring company and the product roadmap—knowing full well the day after an acquisition it may not be all lined up. He says, “The customer may get more efficient in their use of technology because the vendor that they are dealing with has a soup-to-nuts solution that handles a lot of things for them.”
While—as Bodrozic puts it—the vision might not be all lined up the day after an acquisition, in the long run, the customer might get more efficient due to the integration of products. This certainly seems to be the case for Trimble. Other technology providers, perhaps, not quite as much. However, I would love to hear your thoughts. What do construction companies really need to keep in mind following an acquisition?
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