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Accruent, LLC

Details

Sector(s) | Subsector(s) Technology | Software
Investment Year 2013
Status Past | Acquired by Genstar
Location Austin, TX
Region North America
Exited Year 2016

Accruent is a leading provider of real estate and facilities management SaaS software.

Mark Friedman
TA came to us not as an investor seeking a quick return, but as a partner genuinely interested in creating further value for our customers and employees. The support provided by Hythem El-Nazer and Jason Werlin enabled Accruent to reach new levels of sustained growth faster than we ever imagined.
Mark Friedman, Founder and Chairman of Accruent

TA helped Accruent:

  • Recruit a COO, President, Chief Revenue Officer and an independent director
  • Complete four complementary acquisitions, all of which were sourced and originated by TA
  • Enter into a new industry vertical
  • More than double revenue and triple EBITDA

About Accruent

Founded in 1996, Accruent offers comprehensive facilities and real estate management systems that deliver long-term, best-in-class, operational and financial performance. The company provides site, lease, project, facilities, asset management and facility capital planning software and services that are purpose-built for specific industries to deliver greater customer value. Accruent offers its products to customers in the corporate, education, wireless, retail and healthcare markets. The company is based in Austin, Texas.

The Investment Opportunity

TA conducted a significant amount of due diligence within the enterprise asset management software market, and specifically within the integrated workplace management systems and computer aided facilities management spaces. As a result of the firm’s deep dive into the various subsectors, Accruent emerged as a market leader. Despite operating within a fragmented and competitive market, TA believed that Accruent had significant opportunity for multiple organic and inorganic growth initiatives. The firm completed a majority stake in Accruent in November 2013.

Adding Value to Scale Growth

Recognizing how critical it is to have top-tier executive talent at our portfolio companies, TA has historically placed a significant amount of focus on human capital. We viewed CEO Mark Friedman to be a strong and passionate leader, but was seeking to provide him with additional support and resources to help drive profitable growth. To support this initiative, TA identified and recruited several senior-level professionals to join Accruent in both existing and newly created roles, including a Chief Operating Officer, President and Chief Revenue Officer, as well as an independent board member.

TA also believed that Accruent was well positioned to capitalize on inorganic growth opportunities via add-on acquisitions. While the company was active within the telecom, education, corporate and public-sector verticals, we recognized a key sector that would benefit from Accruent’s service offerings: healthcare. TA helped Accruent source, originate and complete four complementary acquisitions, three of which were within the healthcare space. As a result, Accruent was able to successfully enter the healthcare vertical by purchasing the top three players within the space, thereby enabling the company to manage the real estate software needs of 55% of the hospitals in the United States.

Today, Accruent has grown to over 800 employees, is the second largest software company in Austin, Texas and has won numerous awards, including a Glassdoor Employees’ Choice Award as one of the Best Medium-Sized companies to work for, earning the rank of 31 among 250,000 companies nationally. Since TA’s investment, Accruent’s revenue has more than doubled and its EBITDA has tripled.

In the News

Nov 25, 2013

TA Associates Announces Majority Investment in Accruent

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