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The Blueprint – August 2021 Edition – 7 Mile Advisors

By Emily Halstenberg | September 28, 2021

The Blueprint – September 2021

Actionable Intelligence for Leaders in the Architecture, Engineering, Environmental, Geospatial, and Construction Services Industries
During the recent wave of digital transformation in the Industrial IoT and Automation spaces, data analysis tools with user-specific applications have dramatically improved and become more widely available. Simultaneously, massive amounts of data is now continuously being captured on large-scale projects and processes. Underlying this increase in availability of data is a growing pressure to gather insights from that data. In-house analytics tools and simple spreadsheets are no longer able to match the broad swath of easy-to-use capabilities provided by modern industrial analytics software. Legacy applications and in-house tools too often prove incapable of performing advanced analytics or handling large data sets, ultimately resulting in the inability to inform decisions in a timely manner. As one industry expert defined the issue, “there is too much data, and too many demands for insight from improvements in analytics for spreadsheets to be the primary solution.” Users are benefiting from data visualization, machine learning, business intelligence dashboards, and key performance indicators to gain timely and actionable insights.

Equally important to the ability to turn data into insights is data quality and integration. The past 18 months have made these evident as global disruptions in supply chains have demanded flexibility and fast decision making in response to market shocks and changes in supply and demand. While improved analytics tools enable faster responses, they don’t necessarily guarantee insights that will steer the ship in the right direction. Bad data and inefficient data sharing is pervasive and has led to 95% of executives reporting that they don’t trust their data. As a result, more organizations are recognizing the importance of investing not only in cutting edge analytics and connectivity, but also in measurable improvements in data quality.

Industrial Automation stock performance measured by 7MA’s sector index has demonstrated momentum surpassing that of the broader market since July 2021. The overall market and the Industrial Automation index rose sharply since October amid vaccination news, recovery efforts, and a positive outlook for the global economy, but have recently dipped as investor concerns around Chinese debt instability. Industrial Automation stocks are valued approximately 35% higher than last September. Revenue multiples have stayed in between 6x – 7x since January and are currently around 6x. EBITDA multiples have been around 25x since January of this year.

The Download

The best articles from around the web for AEC industry leaders.

Transaction Talk

Insights and intelligence on recent notable industry transactions.​​​​​​

Rockwell Automation, Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and digital transformation, acquired Plex Systems, the leading cloud-native smart manufacturing platform. Plex offers the only single-instance, multi-tenant Software-as-a-Service (SaaS) manufacturing platform operating at scale, including advanced manufacturing execution systems, quality, and supply chain management capabilities. It has over 700 customers and manages more than 8 billion transactions per day. Plex will be reported as part of Rockwell’s Software and Control Operating segment, which provides leading hardware and software offerings for the design, operation, and maintenance of production automation and management systems.

ATS Automation Tooling Systems, independent provider of complete automation solutions for the Process and Manufacturing industries, acquired BLSG AG, a consulting company that specializes in process engineering and operational excellence, and NCC Automated Systems, a provider of engineered-to-order sanitary automation solutions. BLSG focuses on discrete processes and serves customers in Automotive, Logistics, Medical Device, and Food and Beverage sectors.

Siemens Mobility has signed a binding agreement to acquire the Netherlands-based company Sqills, a provider in the provision of cloud-based inventory management, reservation, and ticketing software to public transport operators around the world. Sqills has developed “S3 Passenger” as an outstanding and scalable platform that enables rail and bus operators to replace their legacy reservation systems with a state-of-the-art, online booking system that increases the utilization and availability of passenger transportation. This technology adds an important digital solution to Siemens Mobility’s IoT software portfolio and bolsters its ability to provide the products and services that helps increase the overall usage and convenience of public transportation. The agreed purchase price was €550 million.

See our latest Sectorwatch research reports for a comprehensive list of AEC industry M&A activity and valuation trends.

About 7 Mile Advisors

7MA provides specialized Investment Banking & Advisory Services to the professional service firms in the Consumer Products & Retail industries. We help our clients determine the right strategic partners for their businesses, transition ownership, raise capital, grow through acquisitions, and evaluate new markets. We advise our clients on M&A and private capital transactions, and provide unique market insights. Our team brings experience and energy to all of our engagements, with a focus on helping our clients navigate a changing marketplace.

To learn more about how 7 Mile Advisors can help you evaluate and execute on strategic M&A or private capital alternatives for your business, please visit our website www.7mileadvisors.com.

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