Nemetschek SE (NEM) Earnings Call Transcript & Summary

Hello, everyone, and a big welcome. Thanks for joining our call today to discuss the acquisition of GoCanvas that we announced this night. With me today are our CEO, Yves Padrines and our CFO, Louise Ofverstrom. Today's conference call is being recorded. A replay of the call will be available at our website after the call. Additionally, you find the [indiscernible], the press release and the short presentation on our Investor Relations website as well. But now let's get started. So I would like to turn over to our CEO, Yves.

Thank you very much, Stefanie, and good morning, everyone. Welcome to our update call. It's a special and exciting day for us. I'm delighted to announce that the Nemetschek Group has signed a definitive agreement to acquire all shares of GoCanvas Holdings, the leading provider of SaaS solution for digital forms and work process management and safety solutions for the construction industry. You may have seen in the press release that we published 2 hours ago on this. By the way, given the inherently very short-term notice for this call, it's great to see so many of you participating. So thank you for joining us to hear more about this great deal. We have prepared a short slide deck containing additional information that address the most important points of planned transaction, as you can see on Slide #2. After laying out the compelling strategic rationale behind our decision to acquire GoCanvas, I will give you a brief overview of the transaction, the acquisition targets as well as a substantial synergy potential we see based on this transaction. Afterwards, we will have sufficient time to address any questions that you may have during the Q&A session. Let's go to Slide #3. As you all know, M&A has always been an integral part of the Nemetschek Group DNA as well as the company's tremendous success story. And as we confidently highlighted over the last year, the fact that we did not make any large-scale acquisition in recent years, by no means a sign that value-accretive M&A was no longer on top of our agenda. In contrast, in times of high-rising valuation in the software industry, in large parts, also for lower quality companies, we doubled down our efforts and intensified our due diligence process for potential targets. And if our targets was not the perfect fit for us. We [indiscernible] pricing discipline in order to avoid potentially costly mistakes and to thus maximize the value generation for shareholders. At the same time, this has allowed us not only to focus on accelerating our organic growth, new innovation and a very successful transition to a subscription and SaaS-centric business model, but also to establish an extremely solid balance sheet. It's the scrutiny of potential targets, combined with our substantial financial firepower that has allowed us to identify GoCanvas, as the perfect acquisition for the Nemetschek Group in order to drive the acceleration of the digitalization in the construction industry. It is, therefore, not only by far the largest acquisition in the history of our company, but also a perfect complement to Nemetschek's technology, customer base and geographic presence. By combining our group's existing capabilities in the Build segment, with a leading SaaS solution for the paperless collection reporting and integration of field data, this enable us to unlock the massive filed worker opportunity in construction as well as several adjacent industries. It is therefore ultimately an important building block for the Nemetschek group's next phase of growth. Let's move on to Page #4 and why we are so excited and convinced that GoCanvas will add value to the Nemetschek Group and therefore, to our customers as well as shareholders. Firstly, I already mentioned, GoCanvas is the leading provider of SaaS solution for the paperless collection, reporting and integration of field data in Construction and adjacent verticals. With their unique breadth of user-friendly solution, GoCanvas aims to digitalize traditional paper-based processes, improve safety and ensure maximum compliance with industry standards. Following its strong growth recorded in recent years with an annual increase in revenue of around 20%, the company generated an annual recurring revenue of USD 67 million in 2023. The company has over 300 employees in U.S., Canada, Australia and South Africa. As a provider of pure SaaS solutions, GoCanvas will also further accelerate a successful transition to a subscription in SaaS centric business model, which is one of the key strategic priorities of the Nemetschek Group as we know. Secondly, GoCanvas fits perfectly into our Build segments, which has strong double-digit market growth. It's an ideal addition to our existing solution portfolio in the Build segment, and therefore, represents a valuable expansion of our expertise in covering the entire life cycle in the AEC/O industry. It's a perfect complement to our existing portfolio of solutions in the Build segment and, therefore, represents our expertise by adding GoCanvas, powerful solution , we have a strong competitive advantage while gaining access to the rapidly growing market for field workers in construction and other adjacent industries. By combining Bluebeam, already today -- the most trusted name in collaboration solution for the Build and Construct sector with its massive base of field workers, together now with GoCanvas customers in the field, we will create a truly unique ecosystem for the construction industry. Thirdly, we see a huge synergy potential. The acquisition of GoCanvas and its complementary technology, customer base as well as geographic presence will create significant growth opportunities and technology synergies. Furthermore, GoCanvas, already strong position in the fast-growing field worker market will not only enhance our market and customer access, but also substantially increase our TAM for the Build segment. I would like to highlight GoCanvas currently already large and diversified user base of more than 300,000 paying users. We, therefore, have a huge opportunity to address these customers with our solution in the Build segment and even more importantly, we can address the over 3 million users of Bluebeam, with solutions from GoCanvas and cross-selling to over 3 million users Bluebeam customers or the GoCanvas portfolio. An additional benefit of acquiring GoCanvas is that it further strengthens our position in the U.S., while providing GoCanvas with a unique opportunity to expand in Europe and Asia/Pacific. All in all, we are, therefore, highly confident that the acquisition of GoCanvas will create a strong value for our customers and best in turn also for the Nemetschek Group. On the next slide #5, you see a comprehensive company snapshot of GoCanvas. GoCanvas mission is to simplify inspection and eliminate paper by digitalizing paper-based processes with flexible cloud and mobile field worker solutions, therefore, help customers to efficiently collect real-time data, collaborate across work sites, create digital checklists, make data-driven decisions and replace paper work with smart, simple workflows, which ultimately increase efficiency and safety in the construction industry. I have already mentioned most of the key figures, such as the ARR growth of around 20% in recent years as well as the fact that as a pure SaaS provider, GoCanvas processes a revenue base that is almost 100% recurring. Again, GoCanvas has already a large and diversified user base of more than 300,000 paying users. We therefore, have a huge opportunity to address customers with our solution, but we can also address the over 3 million users of Bluebeam with solutions from GoCanvas. If we take a closer look at the business model and structure of GoCanvas Holdings, you will see on Slide #6 that the company has 3 business units. Starting with Jobsite, which amounts for around 50% of the company's revenue. Jobsite offers a GoCanvas products mainly to companies operating in construction, but also to customers from other selected adjacent industries such as utilities, energy and manufacturing. In Jobsite, customers can choose from about 20,000 template data collection forms or can create their own with an easy-to-use application and can then deploy them to any mobile device to use in the sales. It can be used as standalone workflows or can be centered around projects for informative project level dashboards. Common use cases include field reports, inspections, work orders and even in [ voting ]. The second biggest business units, with roughly 30% of the group's revenue is Safety, which offers a size of products to companies operating primarily in construction but also in other verticals. With [30 DAX ], general contractors can keep the whole site safe from practice safety management to incident reporting in a way that it's easy to use and adopt in the field. From process management to certification tracking 30 DAX is a comprehensive solution for workers and contractors orientation [ TecDAX ] has us indication and litigation, safety communication and when needed, incident responses. Fire is the newest business unit and accounts for roughly 20% of the revenues. It offers both a GoCanvas Fire & Life Safety sets of application and also a white label capability so that other firms can create and resell on GoCanvas as their own application, which is the case for some large customers. If we add together the customer base of these 3 underlying business units, the vast majority of group sales, around 70% are generated in the engineering, construction, building, and infrastructure verticals. Let's go to Slide #7. The Construction industry is full of stories about the need to improve productivity and efficiency. We have at Nemetschek a long history of supplying technology to [indiscernible] in the office from partners and designers to BIM coordinators, to construction managers. And of course, we have usage on the Jobsite with part of Bluebeam and of course, with 123Onsite from Nevaris. With GoCanvas, we will now address both the Jobsite and the field worker at scale with a solution that sees a wide range of customer needs and the end users so the workers in the field love to use. If you're not making the field workers job easier, you will not see adoption of the software at scale. The GoCanvas solution helps solve for the industry challenges by empowering customers to deploy easy-to-adopt solution in the field. That means their own specific needs, delivering productivity improvements at the work site through simple mobile applications, keeping workers safe and enable easy compliance with safety regulations, and reducing the overhead associated with managing worker assignments. One hallmark of our existing Bluebeam solution is flexibility and speed to value and GoCanvas fits the [indiscernible] perfectly. On Slide #8, we take the opportunity to create value through the positive synergies with our existing portfolio over time, Bluebeam as a gross customer base, including both general and subcontractors that is used by over 3 million users worldwide. To review design and growing, mix plans and communicate instructions between contract parties and between the office and the field. In the U.S., according to the Bureau of Labor and Statistics, there are around 10 million employees in construction in the U.S. alone, the vast majority, more than 3/4 of them are in the field and not using software today. GoCanvas will let us address many of these people, and we'll be able to create new offerings that bring the flexibility of GoCanvas to the Bluebeam customer. 123Onsite, an offering from Nevaris from the Nemetschek Group also addresses these use cases and will be able to create new value from customers with the combined capabilities. We are planning to bring GoCanvas to Europe with our strong position there, offering health and safety offerings also to 123Onsite customers and to Bluebeam customers beyond U.S. and Canada. Finally, we see the opportunity to improve our position in North America, including the potential to bring the strong time and equivalent capabilities of 123Onsite in North America and beyond. Our strong global presence gives us a unique footprint to GoCanvas internationally outside U.S. in both Europe and Asia, not available to them independently. Now as we are coming to the end of our presentation on Slide #1 (sic) [ Slide#9 ], we have summarized the most important transaction details. As already mentioned, we intend to acquire 100% of GoCanvas Holdings, Inc. as part of the share deal. This [ entire purchase price ] is based on a 2023 ARR multiple of around 11.5x, which is considerably below Nemetschek on valuation levels and multiples. The transaction will be financed by Nemetschek own cash resource as well as fully committed debt financing. Even though GoCanvas is by far the largest acquisition in Nemetschek history, our extremely solid balance sheet, combined with our strong underlying earnings and cash flow generation will provide us with a high degree of safety going forward and continue to enable us to act flexibly to wider generated M&A targets and venture investment opportunity emerge in the coming months and quarters. As GoCanvas fits perfectly with Bluebeam, all our strength, GoCanvas will also join Nemetschek as part of the Build segment after closing. The acquisition is expected to close in summer 2024 and is subject to customary regulatory approval and closing conditions, until the transaction closures, each company will continue to operate independently. After closing, GoCanvas CEO, Viyas Sundaram, and his team will join the Nemetschek Group and continue to drive the business. More details regarding the transaction, potential synergy as well as the expected impact from Nemetschek Group financials will be disclosed after closing. And with that said, I would like to thank you for your attention, and we are now happy to take your questions. So operator, please, back to you.

[Operator Instructions] And the first question comes from George Webb, Morgan Stanley.

Congratulations on the deal. Firstly, just considering the functionality set. Can you give me kind of detail on how you thought about the buy versus Build [indiscernible] to GoCanvas and in terms of how hard it would have been sort of moving over time, maybe go from the likes of giving punch lists out to build some of these similar functionality areas. Secondly, under the previous ownership, what's your view on how GoCanvas will run? Was it more focused on maximizing sales growth? Or was there more of a balance between gross and margin? And then thirdly, I know you mentioned that you'll have to wait until closing to get a better sense of the impact on the group financials. Can you say anything around the margin profile of GoCanvas? Is it running at a profitable level on a kind of -- [indiscernible] operation profit basis.

Thank you, George. I'm not sure what's exactly your first question because the line is quite bad. But regarding your second question regarding gross versus margin. So clearly, the big, big focus is on the growth side. And we are expecting, of course, to continue at least to minimum 20% revenue growth. But of course, with all the synergies that we have in front of us, we expect to add a couple of points of growth, not only to GoCanvas, but a couple of percentage of revenue growth on the Build and Construct division. And of course, profitability is key for us, and we see a lot of opportunities, very short term to really increase significantly the profitability of the business. Regarding your first question, so can you please repeat it because I'm not sure I understand everything.

Yes, sure. I was basically asking what was the buy versus build equation that you were thinking of? I think -- what was in the world in which Bluebeam could have moved into many of these different functionality areas but it would have taken a year or 2? And how do you think about that option versus buying GoCanvas?

So these are very, very different type of functionality that Bluebeam is doing. As you know, Bluebeam is really focusing on collaboration software to do exchange of PDF files and also to do market on PDF. And we are a little bit used in the field, of course, also, but Bluebeam is really an office-mainly solutions. And as you know, and as I indicated, the construction industry, I mean the majority of the employees are in the field. And this is a huge, huge opportunity of growth and clearly significantly increasing our TAM. So here, yes, it's a fragmented market, the field worker industry and market but, clearly, GoCanvas is one of the leading player there. And it's really hard to achieve scale, so buying is clearly a much better option. So it would have taken a long time for us to be there and probably not be able even to achieve just [ scale ] because it's a very different type of solution, very different type of technology. And we don't have the expertise, especially if you look at the safety business, which is a different business than what we are currently doing on field collaboration software.

Absolutely helpful. And just last one, if you had to look back at the 2023 financials of GoCanvas, was it making a statutory GAAP operating profit?

So if you look at the 2023 financial standalone of the GoCanvas period, they are still very, very strongly with this group and investing a lot in the future, of course, and that's why they are still standalone in the 2023 below the Nemetschek level, which is very high as you know. But we are also acquiring the company at the perfect timing where economies of scale and most of our operational leverage and of course, these huge synergies that we see will contribute really, very nicely to that as well. So they all are really on a very, very decent level themselves, standalone, very closer to say around somewhere around the Rule of 40 company already. And this will also remain in [indiscernible] term. But as I said, there are also at a perfect spot now due to the strong growth. We grew the leverage through the operational synergies that we see in the economies of scale. We need to comeback very very quickly to reach the level especially we see in the Nemetschek Group. What we cannot say here, and I think that's important, though, that any impact on the Nemetschek Group we cannot accurately know how it is. But instead we have signed the deal, it's subject to approvals. So only after sourcing, we can do purchase price allocation and everything that is, of course, accounting measures that has an impact short term, of course, to the -- contribution. And that's why it's difficult to say how [indiscernible]. We will come back to that, of course, after closing in [indiscernible].

The next question comes from Sven Merkt, Barclays.

Can you elaborate a bit further on what level of product integration you aspire for Bluebeam and GoCanvas over the very long term, especially now considering that 30% of GoCanvas revenue are nonconstruction-related and Bluebeam, as you mentioned, was already pushing a little bit into field connectivity.

So for the moment, we are not going to do a big integration. The main point would be the cross-selling fees so that we will take the GoCanvas product and cross-sell to the Bluebeam customer base and vice versa. We will have sell Bluebeam to the GoCanvas customer base. Then what we are planning also to do short-term, midterm is also kind of white labeling probably some of the GoCanvas products at Bluebeam. And of course, on the workflow side, we are planning a long term to see the [indiscernible] team to use GoCanvas to create offerings for Bluebeam customers and we will integrate hopefully directly that with common workflow between Bluebeam and GoCanvas, but that's going to be more in the midterm. But short term, we have already plenty of synergy opportunity less on the cross selling these or white labeling these.

Okay. Perfect. That's clear. And then just a second -- I think you mentioned it earlier, but I not sure I understand correctly, because the line was a bit poor, the 20% growth outlook that you provided, that is before any kind of expected or cost-potential revenue synergies. Is that right?

Correct, correct. 20% revenue growth is standalone, then with revenue synergy, we expect for the Build and division -- for the Build division, so not only for GoCanvas, couple of points of synergy revenue growth over time.

The next question is from Knut Woller, Baader Bank.

First one on the margin side. Is there any invest required to internationalize the product offering of GoCanvas and in sync with that, how fast do you think that you can lift the margins of GoCanvas to a Nemetschek Group level at the GAAP or IFRS level and not adjusted? And then secondly, if I do the math and look at interest income that you're missing, looking at the interest expense, you have to pay for GoCanvas and also the growth commentaries you made, is it fair to assume that GoCanvas prior to PPA will be the earliest accretive in 2025, more likely in 2026, depending on how fast you can lift margins.

So let me take the first point and then Louise, will address the few other points. So regarding internationalization, GoCanvas is already present internationally. So then, of course, most of their products and customers are in North America, so Canada and U.S. but they have also customer in Australia, a little bit in Europe. It's very small, very small. But the point is that there is no need of localization -- too much localization efforts for the product. So it's already ready for internationalization. Of course, there might be some specific countries where we may need still to do some translation. But as you know, today, just translating product, that's not a huge localization efforts.

Maybe then I take the question regarding the impact on the [indiscernible] -- under the same, accretiveness of the deal, et cetera. And as alluded before, of course, is if it's too early to really come to the numbers on that because it's the specific time frames etc are relevant when we close and what time frame we have there, but also, of course, the PPA effect, especially, as I said, deferred revenue business, as you know. So that's why we cannot say that we will come back after [indiscernible]. But what you can, what you are right is that this will be very quickly earnings accretive due to the financial profile and the synergy. And so if there is any charges that will be very, very quickly. And given the strong growth of the GoCanvas business and of course, together with the synergy potential, we see that, as you say, it will be at the earliest of 2025, but to say very, very quickly for this kind of game I think that's a fantastic thought.

Louise. And just 2 quick follow-ups. Can you share with us how fast do you believe you're able to lift margins of GoCanvas to a group level. And then if you talked about the decent margins, has that been non-GAAP margins? Or has that been GAAP margins? You're referring to...

If I start with your question regarding how quickly? We expect to lift the Nemetschek level. We expect to lift this quickly. It's a short-term case that we can really, as I said before, we have economies of scale. We have operational leverage and all vision and standalone business. As I said, it's a perfect point in time for acquiring the business, but also then in addition with our synergies and some of these synergies will come more quicker and some of the synergies will, of course, would also invest in great products, et cetera. We can't say over time that's a nice profile there. So -- and that's why we see that the contribution of the GoCanvas Group will quickly show results on the Nemetschek balance sheet and P&L, but it will also very quickly recover to the Nemetschek margin. But I will also say, this is -- as alluded to, we have huge synergies. So this is a synergistic case. And with all big users, both on the GoCanvas side and also on our side on the Building side of course, on the Nemetschek Group, we will also continue to invest in the product. [indiscernible] in Nemetschek Group, is that we will not sacrifice growth for margin, but we will always deliver the decent margin you're used to as a group, and that will the -- this transaction will definitely not change that. It will strengthen that. And then it will -- you also -- sorry. GAAP and non-GAAP margin, and that's normal GAAP margin.

The next question comes from Florian Treisch, Kepler Cheuvreux.

Great. I have basically one left from my list of questions. But you mentioned you're proud to present the synergy upside coming from the transaction by combining sales for some product a bit. But can you give us, let's say, a status quo where we are today? Do you have any deeper insights how big the client overlap is already today? Have you any experiences how kind of -- how successful the synergy upside can be to basically better understand the dynamics behind it?

So clearly, we have done a very deep due diligence on these cases, interviewing a lot of customers, and GoCanvas customers, but also Bluebeam customers. And very interestingly, there is a beautiful overlap, especially when we look at the construction industry, but interestingly also, they are quite present also in utilities and energy and oil and gas. And we also have more and more in the last few years Bluebeam customers, interestingly in the oil and gas field. So in engineering customers, we also have some very nice overlap of customers because and also everybody who are doing field inspections, a lot of these companies in the U.S., in particular, are already using Bluebeam. So yes, we are quite excited about this synergy potential.

And the next question comes from Nay Soe Naing, Berenberg.

First one for me, it sounds like really exciting deal, looking at the product reviews online as well as very favorable for GoCanvas, but as we know in this Build product market, there are many great businesses out there, especially in the private market. So would you be able to share why GoCanvas in particular? Why did you go for this, not the others, please? And then secondly, with regards to the cross-sell and upseIl opportunities, especially with your Bluebeam business, you talked about how Bluebeam is more of an in-office solution, whereas GoCanvas will be on-site solutions. Can you talk a little bit more to the overlap in the customer base, please, in terms of who you would be cross-selling, upselling to, and where the overlap comes from in terms of customer type and size. Now, I a very quick follow-up question...

So clearly, first of all, why GoCanvas? Very, very simple, and I hope I was clear in my presentation earlier. It is one of, if not the market leader in the field construction solutions. So it can scale, it is the only one who can really scale. It's very simple and delightful for customers and they have very high net promoter score. So it's mainly cost presentation that the [ images indicate ] in the presentation. And it's also one of the only scale business, which was also accountable because a lot of the other companies which are there are way smaller most of the time. So I'm not sure about the scale. [ NGS ] was not as big -- and also sometimes also profitability was much lower and the growth not necessarily as good. Here, they have a very good go-to-market performance. So they are very complementary with us in terms of technology. They are very complementary with us in terms of customer base. Of course, if you look at the Nemetschek Group, they are very complementary in terms of geography because it's largely in the U.S. If you look at the customer overlap, it's ranged from small contractors to very large contractors. And what we learned is that because of the customers of the projects, the end user, they really love the products. And even if you look at the Fire, for example, solutions with their white-labeling solution, we have very large, very large companies who are white labeling and reselling our GoCanvas Fire product to their customer base. So yes, great fit.

That's very helpful. And a quick follow-up for Louise. I don't know if I heard you correctly earlier, did you mention that GoCanvas in 2023 was already a Rule of 40 company. i.e., top line growth plus profit margins.

That's in that ballpark, right? So in that ballpark despite the strong growth, they are already very close to achieve that, but that was the standalone effort that before any kind of integration, integration assets, PPA effects, et cetera, et cetera, definitely give you a sense, of course, due to the strong growth they are all ready to stay on that ship. So the business, as SaaS is already set for that, very close to that. And that's also what we continue going forward, that it will be a 40 -- Rule of 40 plus company also as a contribution to the group.

Yes. really, clearly, even without the synergy and going forward, stand-alone, on a pure stand-alone basis, GoCanvas are planning already in 2024 to be above the Rule of 40.

And then synergies come -- and I think that's important as well. So we also have synergies in the group to say it's also the question how. And I think that's important, though, to point out -- as I said, it will come back with the short-term impact because there were also, of course, the effect of the PPA and integration, et cetera, which is accounting measures, but it's still an accounting measure. So it's something we have to show. So that's why we will come back on that.

And just so to clarify here, the Rule of 40, you're basing it on ARR growth plus EBITDA margins or EBIT margins?

Revenue, Revenue -- IFRS revenue plus EBITDA margin, IFRS.

The next question comes from Victor Cheng, Bank of America.

Maybe first of all, you talked about GoCanvas being one of the leaders if not the leader in the space. Can you talk about who are the main competitors that GoCanvas see? And then secondly, on the growth, can you talk a bit about good growth drivers? How much of it may be coming from pricing or just user growth. And then thirdly, on the user, can you talk a bit about the size of the user, the size of the companies and maybe the churn rate and maybe net retention rate as well. Any color on that?

Yes. So in terms of the users, it is really a large, large and small. So majority of the customers are small and medium businesses, from general contractors, construction companies and also adjacent verticals like energy, utilities and also manufacturing. And they're also working with very large customers. But as Nemetschek and also as Bluebeam majority of their users is still long term of small and medium businesses. So if you look at the competition. So first of all, if you look at the big construction tech companies in addition to the Nemetschek Group like Fulcrum and [ Autodesk ]. We see GoCanvas more as a complementary not only to Bluebeam, but also to other construction platform. And one of the hallmarks of GoCanvas is that it is open and interoperable with over 1,000 clearance integration, which fits well into the Nemetschek philosophy. So GoCanvas has already integrated, for example, with Fulcrum and under our recently announced [indiscernible] Agreement, we would be happy to extend that to other that Construction Cloud as well. So then if you look at who are the biggest competitors in the subvertical, we're looking at field management solution. Given, we believe the space is about 10% [indiscernible], the biggest competitor is, of course, paper because the penetration of digitalization into specific submarket is very, very low. So paper is the main competition. But in terms of direct software competition, the main ones are TrueContext, GoFormz, and SafetyCulture.

Very clear. And maybe on the growth as well, can you talk us or maybe some of the growth drivers that it had or historically.

Well, clearly, the growth drivers as Bluebeam is really user growth. So that's the fact -- I mean, again, a low level of digitalization. So it's all about user -- user growth.

And we have a follow-up question from Knut Woller, Baader Bank.

Just two quick ones. The first one, regarding pricing. Is there any -- are there any plans to change the pricing of GoCanvas or rather keep it stable? And then lastly, on the 30% of ARR generated from other verticals than you cover because -- do you intend to keep those -- this as part of your offering? Or is there any intent to disclose it because it's not your core offering?

So first of all, we're not planning to change anything on the pricing side. And second point is on the adjacent verticals, of course, we want to keep it and not only we want to keep it, but we want to develop it because this is, of course, also increasing our TAM and we strongly believe that we can sell also Bluebeam more to this customer base. Again, Bluebeam, core business is collaboration software to exchange PDF files. So somehow, anybody who is using PDF use this. So we can see already great fit in utilities, in energy, in oil and gas, where we have already existing Bluebeam customers, but not potentially also in manufacturing, et cetera. So we clearly, clearly want to keep this business and continue to grow it because it is adding adjacent verticals to our core construction, engineering business. But our clear focus of Nemetschek as a group is in AEC/O. We are an AEC/O software, construction software company. This is our main focus, of course, we will, that's the priority #1.

And the next question comes from Nay Soe Naing, Berenberg.

I've got 2 follow-ups, if I may. Firstly, on the integration plans between Bluebeam and GoCanvas. Presumably GoCanvas will operate as a stand-alone brand initially, but do you have any aspirations to integrate it fully into Bluebeam? And then second question is around whether if you also plan to add or integrate GoCanvas into your D-Twin offering?

So just to make it clear, in terms of the structure, so Bluebeam is going to acquire GoCanvas. So there will be an integration and therefore, on the G&A functions, we will see straightaway a lot of integration efforts, but also synergy. And we are planning them also to do a lot of synergy on the go-to-market front. But, of course, we keep the product engineering pieces stand-alone. And GoCanvas, we operate R&D and some of their of specific sales and product specialists, specifically within the brands. But it's going to be really kind of a piece of Bluebeam business.

That makes sense, then any plans with your D-Twin offering?

On the D-Twin offering, yes, there could be also some potential integration based on consumer needs and not only with D-Twin by the way but also with [indiscernible] even field services for our operator managed business. So if you look, for example, at Spacewell, we can see also some synergy where we can use some of GoCanvas products to get on Spacewell. So clearly, between Digital Twin, Spacewell, but also new offers, we see some very, very integration point and then [indiscernible]. But of course, the core volumes and the needle mover will be Bluebeam.

At the moment, there seem to be no further questions. [Operator Instructions]. There are no more questions from the audience. So I hand back to the company for closing remarks.

Perfect. Thank you, everyone, for attending. We are looking forward to catching up with you soon. If you have any follow-up questions, so please do not hesitate to contact me or Padrines, so we are always available. Then if there are no further questions, let's conclude the call. Thank you very much for attending.

Thank you very much, everyone. We are looking forward to closing this deal, hopefully soon, and to welcoming this great GoCanvas team into the Nemetschek Family. Thank you, everyone.

Thank you.