Nemetschek (NEM) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition targets a leading SaaS provider for digital forms, workflow management, and field data collection in construction, complementing existing technology, customer base, and geographic reach.

• Accelerates digitalization in construction and adjacent industries, unlocking the field worker opportunity and expanding the Build segment's market.

• GoCanvas offers strong growth, high recurring revenue, and a large, diversified user base, fitting the strategic shift to SaaS and subscription models.

• The deal leverages GoCanvas' strengths in North America and provides expansion opportunities in Europe and Asia-Pacific.

• Combining Bluebeam and GoCanvas communities creates a unique construction ecosystem, strengthening competitive edge and customer value.

Financial terms and conditions

• Nemetschek will acquire 100% of GoCanvas Holdings in a share deal, with an enterprise value based on a 2023 ARR multiple of 11.5, below Nemetschek's own valuation.

• The transaction is financed through existing cash, fully committed debt, and credit facilities.

• GoCanvas generated $67 million in ARR in 2023, with around 20% annual growth.

• Strong cash flow generation is expected to rapidly de-lever the balance sheet.

• GoCanvas is close to Rule of 40 status, expected to exceed it in 2024.

Synergies and expected cost savings

• Significant cross-selling opportunities between GoCanvas, Bluebeam's 3 million+ users, and other group products.

• Synergies expected to add a few percentage points to revenue growth for the Build division and accelerate SaaS transition.

• Operational leverage and economies of scale anticipated to quickly lift GoCanvas margins to group levels.

• Integration of G&A functions and go-to-market synergies planned, with product engineering remaining largely standalone.

• Opportunity to address new customer groups and adjacent industries by connecting product offerings.