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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.

TA helped Accruent:

  • Recruit a COO, President, Chief Revenue Officer and an independent director
  • Accelerate growth by completing four complementary acquisitions, all of which were sourced and originated by TA
  • Enter into a new industry vertical which significantly expanded its total addressable market
  • More than double revenue and triple EBITDA

About Accruent

Founded in 1996, Accruent offers comprehensive facilities and real estate management systems that we believe 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 accelerate 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.

TA exited its investment in Accruent in 2016 through the sale to Genstar Capital Partners.

Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.

In the News

Nov 25, 2013

TA Associates Announces Majority Investment in Accruent

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