Fortive To Acquire ServiceChannel For $1.2B; Raises Q2 Revenue, Profit Margin Guidance

Fortive Corp FTV agreed with Bayard Capital and Accel Partners to acquire ServiceChannel for $1.2 billion.
ServiceChannel is a provider of SaaS-based multi-site facilities maintenance service solutions with an integrated service-provider network.
Fortive will fund the acquisition primarily with available cash. It held $1.3 billion in cash and equivalents as of Apr. 2, 2021.
The acquisition will close in Q3 of 2021.
Upon closing, ServiceChannel will be an independent operating company within Fortive's Intelligent Operating Solutions segment.
ServiceChannel fits well alongside Accruent and Gordian, broadening the company’s offering of software-enabled solutions for the Facility and Asset Lifecycle workflow, Fortive CEO James A. Lico said.
Fortive expects ServiceChannel to generate $125 million of revenue in 2021.
Outlook: Fortive raised its Q2 2021 revenue growth guidance to 25% from the prior range of 20%-23%, versus consensus of $1.28 billion.
It raised the core revenue growth guidance to 20% from the previous range of 16%-19%.
It expects the adjusted operating profit margin to surpass its prior guidance of 19.5%-20.5%.
The company will hold its earnings call on Jul. 29.
Price action: FTV shares closed lower by 0.33% at $70.45 on Monday.

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