8-KAcquisitions & DispositionsMaterial AgreementsFinancial Events+2

Autodesk, Inc. 8-K Report, Material Agreement (Dec 20, 2018)

Filed December 20, 2018For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) filed an 8-K on December 20, 2018, primarily announcing the completion of its acquisition of PlanGrid, Inc. for approximately $875 million. This strategic acquisition aims to enhance Autodesk's construction portfolio by integrating PlanGrid's field productivity software. The filing also details significant financing activities, including a new $650 million unsecured revolving credit facility and a $500 million delayed-draw term loan facility, both with Citibank, N.A. The term loan was utilized to partially fund the PlanGrid acquisition. In addition to the PlanGrid acquisition, Autodesk announced its agreement to acquire BuildingConnected, Inc. for $275 million, a move expected to add crucial bid-management capabilities and further strengthen its construction technology offerings. This report provides key financial and contractual details regarding these significant strategic transactions, outlining the terms of the new credit facilities and the acquisition structure. Investors should note the forward-looking statements and associated risks disclosed in the filing, particularly concerning the integration and realization of benefits from these acquisitions.

Key Highlights

  • 1Autodesk completed the acquisition of PlanGrid, Inc. for $875 million on December 19, 2018.
  • 2The acquisition of PlanGrid is intended to bolster Autodesk's construction industry software offerings.
  • 3Autodesk entered into a new $650 million unsecured revolving credit facility and a $500 million delayed-draw term loan facility, both with Citibank, N.A.
  • 4The $500 million term loan was drawn to fund a portion of the PlanGrid acquisition cost.
  • 5The new revolving credit facility replaces an existing $400 million facility and can be increased up to $1 billion.
  • 6Autodesk announced an agreement to acquire BuildingConnected, Inc. for $275 million, a deal expected to close in FQ4 2019.
  • 7The BuildingConnected acquisition is aimed at adding construction bid-management capabilities to Autodesk's platform.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce the completion of Autodesk's acquisition of PlanGrid, Inc. and to disclose related financing activities, including new credit facilities. It also announces an agreement to acquire BuildingConnected, Inc.

The PlanGrid acquisition was financed through a combination of sources, with a significant portion funded by a new $500 million delayed-draw term loan facility entered into with Citibank, N.A. The total purchase price was $875 million, net of cash.

Autodesk established a $650 million unsecured revolving credit facility maturing in December 2023, for general corporate purposes, and a $500 million delayed-draw term loan facility maturing in December 2020, specifically to finance the PlanGrid acquisition. Both facilities have variable interest rates based on Autodesk's Public Debt Rating and involve various fees and covenants.

The planned acquisition of BuildingConnected for $275 million is expected to add bid-management capabilities to Autodesk's construction software portfolio, creating a more robust digital marketplace for construction services. This acquisition is subject to customary closing conditions.