Smart Buildings

Trane Augments Integrated Workplace Management Portfolio with Acquisition of Nuvolo

This Research Note examines what’s behind the bolt-on acquisition of Nuvolo, the workplace management software company announced this week by Trane Technologies, the US HVAC equipment firm. Trane is considered to be a competitive second-tier supplier in the world building controls market, behind Siemens, Honeywell, Johnson Controls and Schneider Electric. In a move which emulates that of the company's building controls peers, the firm has acquired Nuvolo, a US provider of integrated workplace management systems (IWMS). With software becoming a significant differentiator in the building and workplace management sector, Trane has followed the path of its major competitors who have been actively augmenting their hardware business with software acquisitions and investments. For example, Johnson Controls acquired FM:Systems in July this year, Siemens Smart Infrastructure acquired Brightly Software in June 2022 and Schneider Electric completed a strategic minority investment in Planon in December 2020. By combining Nuvolo’s integrated workplace management and enterprise asset workflow software with […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

This Research Note examines what’s behind the bolt-on acquisition of Nuvolo, the workplace management software company announced this week by Trane Technologies, the US HVAC equipment firm.

Trane is considered to be a competitive second-tier supplier in the world building controls market, behind Siemens, Honeywell, Johnson Controls and Schneider Electric. In a move which emulates that of the company's building controls peers, the firm has acquired Nuvolo, a US provider of integrated workplace management systems (IWMS).

With software becoming a significant differentiator in the building and workplace management sector, Trane has followed the path of its major competitors who have been actively augmenting their hardware business with software acquisitions and investments. For example, Johnson Controls acquired FM:Systems in July this year, Siemens Smart Infrastructure acquired Brightly Software in June 2022 and Schneider Electric completed a strategic minority investment in Planon in December 2020.

By combining Nuvolo’s integrated workplace management and enterprise asset workflow software with complementary digital building management systems from Trane Technologies, the company aims to capitalize on the trend to offer one unified solution for the IT/OT building operations of its clients.

Trane Nuvolo Workplace Management Acquisition

Nuvolo Integrated Workplace Management

Nuvolo is based in Wellesley, MA with over 250 employees. Their integrated workplace management platform is built on the ServiceNow platform and allows customers to manage their operations through one unified cloud-native platform. Nuvolo Connected Workplace extends beyond the traditional IWMS scope by offering modern field service management (FSM), warehouse management and cyber security protection for network-connected non-IT devices.

Total disclosed funding for Nuvolo amounts to $56.5 million across six funding rounds, since the company was founded in 2013. In March 2021, Nuvolo raised $32 million in a Series C funding round led by private equity firm, Insight Partners with participation of Kaiser Permanente Ventures, Revelation Partners and others.

Crunchbase reported that Nuvolo expected to significantly scale the company after closing its Series C round, looking to hit $100 million in annual recurring revenue by late 2022. Claiming to be the world’s fastest-growing SaaS-based Integrated Workplace Management System (IWMS), Nuvolo Connected Workplace serves more than 1,550 clients globally.

“Our partnership with ServiceNow is the cornerstone of our success”, said Tom Stanford, Nuvolo’s CEO in 2019. “As one of the fastest growing software companies in the North America, we recognize and appreciate the correlation between ServiceNow as our platform partner and our success as a business.

Industries served by Nuvolo include healthcare, life sciences, retail, public sector, higher education, technology, financial services, and enterprise. Nuvolo has built out specific workplace management capabilities aimed at the healthcare and life sciences sectors, the company’s largest vertical market, claiming a footprint in 65% of U.S. hospitals. Mayo Clinic was also an investor in Nuvolo’s Series C round in 2021.

We also note that Trane Technologies has accelerated its efforts to transform itself into a software company with a strategic partnership with Brainbox AI announced in September 2023. Trane Autonomous Control powered by Brainbox AI enhances existing connected Tracer SC+ building control systems – incorporating variables like predictive weather data and occupancy trends for improved building performance and sustainability.

Trane Technologies is still very much an equipment company, with installation and service accounting for the vast majority of revenue. Like many of their competitors, they are trying to accelerate the development of a high-growth Software-as-a-Service business. This acquisition will add significantly to its software revenues.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.

Most Popular Articles

Smart Buildings

Azbil Building Automation Business & FY2023 Financials Examined

In this Research Note, we examine Azbil, a Japanese public company with a leading position in the domestic building automation market. The financial highlights and growth strategy analysis of the Building Automation business is based on their FY2023 annual results, year ending 31st March 2024, Annual Report 2023, and investor presentations. Azbil Building Automation Financial […]

MapMortar Startup Examined
Energy

MapMortar Examined: The Google Maps for Zero Carbon Building Retrofits

This Research Note examines an early-stage UK startup, MapMortar which has developed a retrofit twin platform designed to help large commercial real estate portfolio owners and asset managers model and simulate portfolio decarbonization to plan, manage, and execute retrofitting at scale. Founded in 2022 as Mortar.io, the startup changed its name to MapMortar, headquartered in […]

AI in Commercial Buildings
Smart Buildings

Major Players Put Their Weight Behind AI in Commercial Buildings

The development of artificial intelligence (AI) in commercial buildings is far-reaching, leading to a broad adoption landscape. The strategic positioning of key players in the AI market for commercial buildings is a critical aspect of understanding the current landscape and the future potential of AI. “Many large building automation firms are at the forefront of […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy