Benzinga | Jul 13, 2021 05:59AM EDT

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

* Fortive Corp (NYSE: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.