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California-headquartered global software giant Autodesk (NASDAQ: ADSK) has made its second splash in Australia in the space of a week, announcing the acquisition of construction industry payment software company Payapps for an undisclosed sum.
Earlier this week it was revealed that Autodesk participated in a $5 million raise for Sydney-based VAPAR, which provides AI-powered insights to help utilities make decisions around pipeline investment and maintenance.
Previously known as Zuuse and founded in 2014 by Lincoln Easton and Geoff Tarrant, Payapps is based in Melbourne with a presence in Australia, New Zealand, the UK. and Ireland, in addition to its GCPay brand in North America.
Autodesk has signed a definitive agreement to acquire the IFM Investors-backed Australian company, which provides construction payment and compliance management solutions, servicing thousands of clients including BESIX Watpac, Icon, Adco, John Holland, Built, Hansen Yuncken, Multiplex, TClarke, Bouygues and Messer Construction Co.
"The construction sector is evolving at an unprecedented pace, with a growing demand for efficient, technology-driven solutions," Payapps co-founder and executive chairman Geoff Tarrant said in a LinkedIn post.
"Payapps has consistently led the charge in this area, working tirelessly to simplify and automate payment claims to enhance efficiency and accuracy.
"When we join forces with Autodesk, we will be set to further our mission, bringing even greater value to construction companies and their subcontractors around the world."
Payapps raised $50 million in November 2020 with backing from IFM Investors and Aconex co-founder Leigh Jasper, and late last year the group secured £10.5 million ($20.3 million) in venture growth investment from CIBC Innovation Banking (CIBC IB) with most of the latest funds going towards the recent acquisition of UK-based WebContractor Holdings Limited.
The group currently assists with the management of more than $12 billion in payment claims on average annually with 40,000 customers to its name and 180 employees spread across its offices in Melbourne, Auckland and Newcastle (UK).
Autodesk Construction Solutions senior vice president and general manager Jim Lynch says the acquisition builds on previous collaboration and a strategic alliance between the two companies announced in September 2022.
Lynch says Payapss' best-in-class cloud offerings accelerate the visibility of payments between project stakeholders, and have helped construction teams save nearly 350,000 project hours a year.
"In North America, Payapps’ GCPay solution also helps general contractors manage the lien waiver exchange process with their trade partners to speed up the payment process," Lynch says.
"With this acquisition, Autodesk customers will benefit from leveraging technology that eases the burden of construction payment management in a process that is simpler, faster, and more efficient for all construction project stakeholders.
"The acquisition further reinforces our belief that how project teams build should be just as rewarding as what they built – and improving processes and workflows is paramount to improving the industry."
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