Back to top

Analyst Blog

Autodesk Inc. (ADSK - Analyst Report) has inked an agreement to acquire Horizontal Systems, a cloud-based Building Information System (BIM) solutions provider. Pursuant to the deal, Horizontal’s BIM solutions are expected to be incorporated into Autodesk 360. Financial details of the deal, which is expected to close in the fourth quarter of fiscal 2012 (Jan 31, 2012)  were not disclosed.

The acquisition is expected to boost Autodesk’s cloud-based BIM. Autodesk and Horizontal clients will now enjoy the benefits of more efficient workflows, easy availability of project data and simplified business processes, resulting in higher profitability and quality product delivery. The Horizontal acquisition will provide added strength to Autodesk’s Architecture, Engineering and Construction (AEC) business segment.

Horizontal systems would be Autodesk’s second acquisition in quick succession in the BIM segment. In October, the company acquired U.K.-based Micro Application Packages Ltd. (MAP Software), a provider of computer-aided design (CAD), computer-aided manufacturing (CAM) and estimating software that lends support to the mechanical, electrical and plumbing (MEP) industry.


The recent acquisitions in the CAD and gaming middleware sections will provide the company with long-term opportunities, particularly in the web-based communities that are most likely to boost the company’s cloud offerings going forward.  

Moreover, Autodesk has no debt and with a healthy balance sheet, the company has the necessary liquidity to continue as the leading developer of 3D designs, with the scope of making favorable acquisitions as required. Additionally, the company’s improvements and innovations in 3D design technology and product portfolio provides a competitive edge.

However, foreign exchange fluctuations combined with increasing exposure to Europe and customer concentration are the headwinds going forward.  Additionally, increasing competition from Adobe Systems Inc. (ADBE - Analyst Report) and Parametric Technology Corp. remains a concern.

We have a Neutral recommendation on Autodesk’s shares in the long term. Currently, Autodesk has a Zacks #3 Rank, which translates into a short-term (1-3 months) ‘Hold’ rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%