Buildertrend, the leading provider of cloud-based construction management software for homebuilders, remodelers and specialty contractors, today announced the acquisition of CoConstruct, a complementary provider of construction project management software for the residential construction industry. Funding for the acquisition is provided by a growth investment in Buildertrend by Bain Capital Tech Opportunities and HGGC. Existing CoConstruct investor Serent Capital is reinvesting in the combined company. Buildertrend Co-Founder and CEO Dan Houghton will lead the combined company alongside Co-Founders Steve Dugger and Jeff Dugger. CoConstruct Founder Donny Wyatt will serve as an advisor to lead integration efforts.
This transaction makes Buildertrend the largest construction management software platform dedicated to empowering independent and custom homebuilders, contractors and remodelers with the tools to better coordinate projects, control finances and communicate with clients and crews. The integrated, SaaS-enabled platform offers flexible project management, bookkeeping, supplies procurement, customer engagement and payments services to alleviate the most common pain points that lead to costly, uncoordinated projects and dissatisfied clients. The combined business served 23,000 clients, over 1.1 million users and facilitated over $200 billion in annual construction project value in 2020.
"Our industry is one of the fastest growing in the U.S., yet it lags in digital innovation and relies on antiquated project management systems to overcome a complex value chain and fragmented contractor ecosystem," said Houghton. "This acquisition, together with continued support from our best-in-class set of enterprise software investors, positions Buildertrend to significantly expand our market share and continue delivering innovative, value-added solutions that improve client success and efficiency."
CoConstruct was founded in 2005 in Charlottesville, Virginia with a mission to bring residential construction project management into the 21st century. The Company has been recognized as Constructech's #1 Software Platform for Construction Collaboration for over ten years in a row, reflecting its best-in-breed product pipeline that meets the growing demands of residential construction managers. Buildertrend clients will also realize cost savings and efficiencies with the integration of CoConstruct's October 2020 acquisition of CBUSA, the nation's largest homebuilder group purchasing organization.
"It's rare to see two market-leading providers share a full-breadth of complementary operations and product capabilities, but each with their own unique ways of addressing customer challenges," said Wyatt. "We're thrilled to bring together our complementary approaches and build an even stronger platform with the combined teams' scale and shared culture of innovation."
"Buildertrend and CoConstruct are award-winning companies that demonstrate to homebuilders, remodelers and contractors on a daily basis there is an alternative to the chaos of delayed and overbudget projects," said Phil Meicler, a Managing Director at Bain Capital Tech Opportunities. "We're proud to partner with Serent and HGGC to back the combination of these two companies, who are poised to disrupt the residential construction market," added Scott Kirk, a Partner at Bain Capital Tech Opportunities. Bain Capital has provided support and resources for the combination of a number of its portfolio companies with other leading market players, including A Cloud Guru with Linux Academy, Zelis with RedCard, Navicure with ZirMed to form Waystar, and HST with Casetabs.
"We've had the pleasure of watching CoConstruct leverage an innate knowledge of the residential construction project lifecycle to build one of the most trusted platforms in the industry. We can't wait to now partner with Buildertrend to facilitate its next stage of growth," said Kevin Frick, a Partner at Serent Capital.
Spurrier Capital Partners served as the exclusive financial advisor to Buildertrend. Cooley LLP served as legal advisor to Buildertrend. PricewaterhouseCoopers and Kirkland & Ellis LLP served as financial and legal advisors, respectively, to both Bain Capital and HGGC. Choate, Hall & Stewart and Polsinelli served as legal advisors to Serent Capital and CoConstruct.
About Buildertrend
Buildertrend is the #1 cloud-based construction management software used by homebuilders, remodelers and specialty contractors. The award-winning tool helps construction professionals complete more projects while reducing delays, eliminating communication errors and increasing customer satisfaction. Since 2006, more than one million users across more than 100 countries have chosen Buildertrend as their preferred platform for real-time collaboration throughout each stage of the construction process. To learn more about Buildertrend, visit buildertrend.com and @buildertrend.
About CoConstruct
CoConstruct is the highest rated construction project management software for home builders and remodelers, as ranked by Gartner's SoftwareAdvice.com, and has landed on the Inc. 5000 list for seven years running. The company's cloud-based construction estimating and project management tools help homebuilders and remodelers coordinate their projects, communicate better with clients & crews, and control the financials of their jobs. For more information on CoConstruct, visit www.coconstruct.com
About Bain Capital Tech Opportunities
Bain Capital Tech Opportunities (https://www.baincapitaltechopportunities.com/) aims to help growing technology companies reach their full potential. We focus on companies in large, growing end markets with innovative or disruptive technology where we believe we can support transformational growth. Our dedicated, tenured team has deep experience supporting growing technology businesses—bringing together differentiated backgrounds in private and public equity investing as well as technology operating roles. We invest behind fundamental long-term tailwinds as technology penetrates across industries, creating a large and growing number of investment opportunities. Bain Capital Tech Opportunities focuses on five priority sub-verticals: Application Software, Infrastructure & Security, Fintech & Payments, Healthcare IT and Internet & Digital Media.
About HGGC
HGGC is a leading middle-market private equity firm with over $5.4 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its Advantaged Investing approach that enables the firm to source and acquire scalable businesses through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. Since its inception in 2007, HGGC has completed more than 200 platform investments, add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of over $28 billion. More information, including a complete list of current and former portfolio companies, is available at hggc.com.
About Serent Capital
Serent Capital invests in growing businesses that have developed compelling solutions that address their customers' needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. At Serent Capital, principals have firsthand experience capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent seeks to help growing businesses thrive. For more information on Serent Capital, visit www.serentcapital.com.
