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Johnson Controls acquires FM:Systems to support building automation services

Johnson Controls has acquired FM:Systems, a provider of digital workplace management and Internet of Things (IoT) solutions for facilities and real estate professionals.

The base purchase price for the transaction is US$455 million, plus additional payments to be made subject to the achievement of post-closing earnout milestones.

“FM:Systems’ powerful, predictive workplace management platform will build on our best-in-class building automation services, OpenBlue, to offer a one-stop solution that helps customers accelerate their digital transformation journey, improve building efficiency and reduce operational costs,” said Johnson Controls chairman and CEO George Oliver in a statement. “Coupled with our building asset solutions, energy management offerings and global field network, this acquisition further differentiates Johnson Controls’ leadership in the fast-growing segment for autonomous and digitally enabled buildings.”

FM:Systems is headquartered in Raleigh, N.C., and owned by Accel-KKR. The company has more than 200 employees and 1,200 customers, representing more than 2.4 million users across 80 countries.

FM:Systems’ software products provide workplace solutions like space-scenario planning, asset management and facilities maintenance, supported by security protocols, floor plan scenario modeling, bi-direction integration with AutoCAD and Revit models, and advanced workplace analytics capabilities.

FM:Systems’ capabilities will support Johnson Controls OpenBlue suite of software, which uses artificial intelligence and digital twin technologies to improve building performance.

FM:Systems CEO and chairman Kurt von Koch will join Johnson Controls’ digital business in a leadership role.

The acquisition is not expected to impact Johnson Controls’ 2023 fiscal year financial outlook.

Centerview Partners LLC served as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Johnson Controls on the transaction. Moelis & Company LLC and Raymond James acted as financial advisors, and Goodwin Procter as legal advisor to FM:Systems.