Private equity-backed Buildertrend has acquired CoConstruct, a complementary construction software technology business, as the homebuilding industry finds itself ripe for innovation.
CoConstruct marks a sizable add-on for the Buildertrend platform, a cloud-based construction management software provider acquired in December 2020 by Bain Capital Tech Opportunities and HGGC. As part of the transaction, CoConstruct’s existing investor, Serent Capital, will reinvest in the combined company.
The combined business has over $100 million in annual recurring revenue, the firms said early Wednesday.
Phil Meicler, managing director at Bain Capital Tech Opportunities, told PE Hub that the firm saw the deal as a bet on disruption in the construction retail market, which is in the process of adopting new technology.
“Residential construction project spending reached $608 billion in 2020 according to the US Census Bureau,” Meicler said. “Buildertrend and CoConstruct have the largest combined capture of this market but they have just scratched the surface.
“The industry is having trouble keeping up with new home sales, and Buildertrend can be a powerful tool to help boost efficiency and control costs.”
Buildertrend, based in Omaha, Nebraska, is used by homebuilders, remodelers and specialty contractors. The firm says its technology helps construction professionals complete more projects while reducing delays, eliminating communication errors and increasing customer satisfaction.
CoConstruct, based in Charlottesville, Virginia, will add to its parent company’s cloud-based construction estimating and project management capabilities.
The firms said that their businesses in 2020 had served 23,000 clients and over 1.1 million users, and facilitated construction projects with a total value of more than $200 billion.
According to Meicler, Buildertrend’s momentum suggests a demand among homebuilders and homeowners for a software-enabled construction experience that promotes efficient project planning, transparency and communication throughout the homebuilding process.
He added that Bain Tech Opportunities plans to scale the platform further through greater organic product investment in areas such as supply procurement, bookkeeping and payments services. “Future acquisitions [are] always a potential part of the equation,” he said.