IBM (NYSE: IBM) announced a definitive agreement to acquire Las Vegas-based Tririga, Inc., a provider of facility and real estate management software solutions.
The move aims to accelerate IBM’s smarter buildings initiatives by adding advanced intelligence that improves real estate performance, capital project management and the outcomes of sustainability initiatives.
Financial terms were not disclosed.
Tririga software helps clients make strategic decisions regarding space usage, evaluate alternative real estate initiatives, generate higher returns from capital projects, and assess environmental impact investments.
Greater efficiencies around the operations and management of real estate are critical for organizations with multiple facilities. Property and real estate typically represents the second-largest expense on a company’s income statement, after employee compensation. Facilities investments and operating costs can be more than 30% of corporate annual spending.
Today many facilities managers, real estate managers and C-level executives rely on separate products from multiple vendors to optimize their facility infrastructure, lease administration, utility consumption, space and occupancy, and facility condition assessment. Each product used by different departments holds silos of information, making it difficult, if not impossible, to share across different operating functions. Similarly, business processes that span multiple groups cannot easily be accomplished when those groups are using different products, IBM said.
"The combination of Tririga and IBM smarter building solutions will deliver the industry’s most comprehensive capabilities that span the needs of all industries for managing facilities and real estate portfolios," said Florence Hudson, energy and environment executive, IBM. "Having one view of building operations worldwide will be a powerful tool to help organizations control and optimize their second-largest corporate expense–property."
More than 200 clients use Tririga software. These include more than one-third of Fortune 100 corporations and seven of the 15 executive departments of the U.S. federal government.
IBM said the acquisition will strengthen its smarter buildings solutions in real estate portfolio management, capital project management, and energy and environmental sustainability.
Tririga will be integrated into IBM Tivoli Software and IBM Global Business Services. The transaction is expected to close in 2Q11, subject to regulatory approval and the satisfaction of customary closing conditions.Tririga employs approximately 200 people worldwide.
Earlier this month, IBM said Smarter Planet projects are estimated to drive $10 billion in revenue for IBM by 2015.
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