HeidelbergCement entered an agreement to take a 45% stake in Command Alkon, the global leader in software and information technology services for heavy building materials. San Francisco-based investor Thoma Bravo, which acquired Command Alkon last year, will retain majority ownership.
The agreement is subject to regulatory approvals, which the parties anticipate clearing by year end.
Through each other’s efforts and stakeholder collaboration, HeidelbergCement and Command Alkon believe they can help advance digital transformation within the heavy building materials supply chain, fostering more transparent industry standards for seamless connectivity; improved solutions to customers’ everyday pain points (e.g., digital ticketing or telematics); a generally increased pace in innovation; and an acceleration of customers’ sustainability efforts.
Independent of the partnership, HeidelbergCement will continue to develop its proprietary digital product suite, HConnect, with more than 18,000 customers worldwide.
“As part of our strategy ‘Beyond 2020’, our clear goal is to become the first industrial tech company in our sector,” said Dr. Dominik von Achten, chairman of HeidelbergCement’s managing board. “We have made significant progress in our HConnect digital customer experience since its development in 2018. The investment in Command Alkon and the partnership with Thoma Bravo now allows us to monetize the hidden potential of our assets and translate [them] into a new growth path.”
“This partnership is a unique opportunity to accelerate digital change across the heavy building materials supply chain,” added Command Akon CEO Phil Ramsey. “HeidelbergCement is a leading industry player, and their investment is a validation of our strategy, solutions and the outstanding customer experience we offer. This transaction will better position Command Alkon to enhance support to all customers, expand our geographic footprint and execute our transition to the cloud. We look forward to continuing to benefit from our partnership with HeidelbergCement and Thoma Bravo as we provide automation and business process technologies that deliver value to our customers and stakeholders across the construction industry.”
“This is our most significant partnership with a global industrial company, and one that we believe will have a lasting positive impact on the sustainability and ease of doing business within the heavy building material sector,” said Thoma Bravo Senior Partner A.J. Rohde. “The goal when we acquired Command Alkon was to modernize the company’s platform, build a digital ecosystem from production to consumption, and expand its global footprint. This investment and industry-changing partnership from HeidelbergCement will help accelerate all of those initiatives for the benefit of Command Alkon customers.”