Computer-aided design software firm Autodesk (NASDAQ:ADSK) announced this morning that it has signed a definitive agreement to acquire Pype, a provider of cloud-based solutions for automating construction project management workflows.  

As the company explains:

Pype's suite of software reduces tedious manual entry and human error that can lead to rework, cost overruns and schedule delays on construction projects. The company's technology leverages artificial intelligence and machine learning to automatically analyze and extract critical construction data such as project plans and specifications to be used throughout the project lifecycle. By automating these traditional manual workflows and converting real-time data into actionable insights, construction teams have the power to increase collaboration and project efficiency. 

Construction workers examine blueprints in front of a house under construction.

Image source: Getty Images.

Pype's software will now be incorporated into Autodesk's Construction Cloud product.

Autodesk has been moving to build up its construction industry-related business in recent years, focusing on creating products to help sub-contractors, trades people, and building owners in their work. Since 2017, says the company, it has invested more than $1.1 billion in nine separate construction technology start-ups. By 2019, this helped grow Autodesk's Architecture, Engineering and Construction (AEC) business to $1.4 billion in annual revenue --about 41% of the company's total revenue. AEC is now both the company's largest "product family" by revenues and also its faster grower, with sales up 35% year over year.  

The Pype acquisition promises to accelerate this growth even further.

Investors are responding positively to today's announcement. In early trading on the Nasdaq, Autodesk stock is already up more than 1% versus sub-1% gains elsewhere on the Nasdaq.