TA Associates, a leading global growth private equity firm, today announced it has completed a majority investment in Accruent, LLC, a leading provider of real estate and facilities management software solutions.
Since 1995, Accruent has offered a comprehensive facilities and real estate management system that delivers long-term, world class operational and financial performance for its customers. The company provides market planning, site selection, project management, lease administration, facilities and space management software that is purpose-built for specific industries to deliver greater customer value. Accruent has been executing a strategy to bring together the best people and products within the real estate and facilities software market to drive innovation and increase the value delivered to customers.
“Our four-year partnership with Vista Equity Partners allowed us to transform our company and products,” said Mark Friedman, Founder and CEO of Accruent. “Our new partnership with TA Associates allows us to stay private and focused on our current strategy while leveraging TA’s global scale and deep industry expertise to provide our customers with even more long-term value.”
Over the last four years, Accruent has advanced its market leadership by completing four strategic acquisitions to become the largest independent provider of real estate and facilities software. The customer base has grown from 400 to over 1,200 customers that use the company’s software in 56 countries.
“We’ve been tracking the evolution and growth of this category for years and Accruent has clearly emerged as the market leader,” said Hythem El-Nazer, a Director at TA Associates who will join the company’s Board of Directors. “It is a very well-run company and we are excited to support the team’s current strategy and direction. We look forward to partnering with management and Vista Equity to build on Accruent’s success.”
Research firm Gartner estimates that, “By 2015, more than 75% of the Forbes Global 2000 companies will manage the No. 2 enterprise budget item (facilities) with Integrated Workplace Management Systems (IWMS). The C-suite is beginning to take notice of the enterprise’s second largest budget item, the life cycle of its facilities portfolio and to seek an integrated solution to its management”, from "Gartner, Predicts 2013: New Trends Bring New Challenges for IT Asset Management and Procurement".
Over the last four years, Accruent has transformed its business model and products from on-premise software to cloud-based solutions that are easier and less expensive for customers to implement. One hundred percent of the company’s new software revenue is now derived from cloud products. The company has also built an extremely strong financial foundation evidenced by successfully achieving 15 consecutive quarters of EBITDA growth while increasing customer satisfaction by 39% and attaining customer retention of 96% during this period.
“Real Estate, Facilities and Site Management represent a large component of enterprise spend and a huge strategic lever,” said Jason P. Werlin, a Principal at TA Associates who will also join the company’s Board of Directors. “The market is fragmented and, until recently, solutions were either painful to implement or incomplete. Accruent’s ability to deliver enterprise class solutions with the ease of cloud deployment is a tremendous opportunity for organizations to unlock value by managing real estate assets in a more strategic manner.”
“Accruent has been an outstanding story of business transformation over the past four years,” added Alan Cline, Principal and Co-head of Vista Equity Partners Foundation Fund. “We have high confidence that Accruent will continue delivering great value to customers and are excited to continue our involvement as an investor and partner.”
Accruent (www.accruent.com) is the world's leading provider of intelligent solutions for the built environment — spanning real estate, physical and digital assets, and the integrated technology systems that connect and control them. Accruent continues to set new expectations for how organizations can use data to transform the way they manage their facilities and assets. With major office locations in Austin, New Orleans, London, and Amsterdam, Accruent serves more than 10,000 customers in a wide range of industries in more than 150 countries around the world.
