UK software firms might be next on the Autodesk acquisition agenda

The UK construction software market could be set for consolidation following a major deal struck last week in the US. CAD-tool producer Autodesk has bought software firm Constructware for $46m.

One technology expert claimed that UK technology providers such as BuildOnline, BIW Technologies, 4Projects and Asite were possible targets for acquisition by Autodesk.

Author Paul Wilkinson, who recently wrote The Extranet Revolution, argued that UK firms may have something to offer Autodesk due to the difference between the US and UK markets. He said: "This (deal) demonstrates that there's an appetite from the major vendors, and that the doom and gloom of web-based ventures is now lifting.

"We're ahead of the game regarding collaboration tools (in the UK). We're used to a dozen or so parties working together. In the US they are more used to small teams and their procurement systems are a lot simpler," he said.

"Autodesk might now look for the same kind of synergy over here, or it might wait to see what the benefits are in the US first," he said.

Autodesk plans to integrate Constructware's cost, bid and risk management capabilities into Buzzsaw, its own online project management tool.

Autodesk might now look for the same kind of synergy over here

Paul Wilkinson, IT expert

In the US, Wilkinson said the takeover could give the firm greater access to new customers, as Constructware is popular with contractors while Autodesk has more of a footing with the design community. He added that the move might also help with breaking into new sectors: "Autodesk might be trying to tap into the public sector. Constructware currently does a lot of work in the education and health sectors."

However, Wilkinson admitted that little is known about Constructware as it is a privately held firm. "I'll be going over to the US next month to learn a bit more about it," he said.

Buzzsaw is being used by design and construction firms on the Freedom Tower project in New York while in the UK it is used by architect Broadway Malyan.

Autodesk acquired Buzzsaw in 2001. It was previously a 40% stakeholder but bought the firm after Buzzsaw posted an operating loss of $50m in 2000. Constructware was founded in 1994.

• The Network for Construction Collaboration Technology Providers, a group for industry software providers, has commissioned Benchmark Research to survey the benefits shared across its members' systems. The results are due in the autumn.