Bain is said to make 3x on Viewpoint

Bain Capital stands to roughly triple its money with the sale of Viewpoint, a source said.

Trimble on April 23 said it agreed to buy Viewpoint in a deal valued at $1.2 billion cash. Bain is the seller. JP Morgan Chase Bank, Goldman Sachs Bank and Bank of America are providing bridge financing, a statement said.

Viewpoint, Portland, Oregon, provides management software for commercial construction companies. The company has about 8,000 customers. Viewpoint has been growing about 20 percent to 30 percent during the past few quarters, said David Humphrey, a Bain Capital managing director.

Commercial construction companies have historically used a “clipboard and a piece of paper” to manage aspects of their industry, including subcontractors, he said.

“Construction is a huge industry,” Humphrey said. “It was late to adopt technology because they were focused on building buildings and doing things the way they always have. You are seeing a digitization of that industry.”

Viewpoint’s revenue grew 67 percent to its current $200 million from $120 million in 2014, Humphrey said. “We saw the investment in Viewpoint as an opportunity to back and support a company to become a real leader,” he said.

Trimble, known for its GPS technology, is looking to expand its services in the construction sector, Reuters said. Viewpoint will be part of Trimble’s buildings and infrastructure segment, the story said.

Bain’s investment in Viewpoint dates to 2014 when the Boston PE firm invested in the company. Viewpoint Founder Jay Haladay sold some of his stake, along with Updata Partners and TA Associates, Buyouts reported. The deal was valued at $400 million with Bain investing about $230 million equity, a source familiar said.

Haladay retired in 2015 and Bain acquired the rest of his stake, the source said.

Viewpoint also completed several acquisitions during Bain’s tenure including deals for MCS Priority1 (now called Field View) in late 2014, JobPac in 2015 and, in 2017, Dexter & Chaney. Earlier this month, Viewpoint bought KeyStyle Data Solutions.

Viewpoint used its balance sheet to fund the acquisitions, the source said.

Viewpoint has not paid out any dividends. Bain used its 11th flagship fund, which closed on $7.3 billion in 2014, to invest in Viewpoint. Bain is expected to make about 3x its money with the sale, a source said.

Bain did not conduct an auction for Viewpoint. But it did reach out to three parties that had proactively contacted the PE firm. Bain agreed to exclusivity with Trimble earlier this year.

Bain/Viewpoint sought financial advice from Dan Connolly and Peter Dalrymple of William Blair on the sale, along with Credit Suisse. Kirkland & Ellis provided legal advice to Bain/Viewpoint. Goldman Sachs advised Trimble while Baker McKenzie served as legal counsel.

Action Item: Call Bain’s David Humphrey at +1 617-516-2000

Photo of engineer reviewing plans for construction site courtesy of bluecinema/E+/Getty Images