Procore to acquire DroneDeploy in $845M cash deal

Key Takeaways:

• Procore is acquiring visual intelligence and robotics platform DroneDeploy for approximately $845 million in cash, with the transaction expected to close later this year pending regulatory approvals.
• The acquisition combines Procore’s construction management software with DroneDeploy’s 3D ground and aerial imaging. Integrating these tools with Procore’s AI will automate jobsite inspections and issue-tracking to help support field teams amidst widespread labour shortages.
• Procore plans to immediately cross-sell DroneDeploy’s solutions across its global customer base while combining their massive datasets—pairing Procore’s decision-making records with DroneDeploy’s 20 trillion square feet of visual site data to build AI-driven “digital coworkers.”

The Whole Story:

Procore has entered into a definitive agreement to acquire DroneDeploy Inc., a robotics and visual intelligence platform used on more than 3 million jobsites across 180 countries, for approximately $845 million in cash, subject to customary purchase price adjustments.

The acquisition pairs Procore’s construction management software with DroneDeploy’s reality capture and robotic automation capabilities. DroneDeploy’s three-dimensional ground and aerial imaging—spanning drones, ground-deployed robots, and mobile, fixed, and wearable cameras—will integrate with Procore’s AI to automatically document observations, identify issues earlier, and drive actions within the platform.

“Once the acquisition closes, we plan to immediately cross-sell DroneDeploy’s solutions into our broader customer base and vice versa,” said Ajei Gopal, President and Chief Executive Officer of Procore, in a news release. “For the longer term, adding DroneDeploy’s technology into the Procore platform will enable us to accelerate our AI strategy and deliver digital coworkers that track what’s happening on a project, make sense of it, and then take action to change the outcome.”

The combined company will leverage two extensive datasets: Procore’s record of construction decision-making—encompassing nearly 400 million photos, over 126 million drawings, and over 10 million RFIs, submittals, and inspections in the last year alone—and DroneDeploy’s visual record spanning approximately 20 trillion square feet, tens of millions of user-generated annotations, and more than 100,000 labeled safety issues.

Manual jobsite inspections will be replaced by multi-modal perception capabilities that automatically initiate appropriate responses. The company said this practical automation helps support field teams amid the acute labour shortage in construction.

“DroneDeploy was built to give people who build, power, and feed our world a source of truth about the physical site,” said Mike Winn, Chief Executive Officer of DroneDeploy, in the release. “Joining Procore accelerates that mission. Going forward, we remain committed to delivering the best ground and aerial reality capture solutions—deeply integrated into Procore to drive automated action—while building on our early investments in AI and robotics.”

The transaction is expected to close later this year, subject to customary closing conditions, including receipt of required regulatory approvals. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Procore; Citi is serving as financial advisor to DroneDeploy.