Thoma Bravo has agreed to acquire Foundation Software, a provider of construction accounting software and payroll services for small- to mid-sized specialty contractors. No financial terms were disclosed.
SAN FRANCISCO and STRONGSVILLE, Ohio, Aug. 4, 2020 /PRNewswire/ — Thoma Bravo, a leading private equity investment firm focused on the software and technology-enabled services sector, today announced an agreement to acquire Foundation Software, a leading provider of construction accounting software and payroll services for small- to mid-sized specialty contractors. Thoma Bravo’s strategic investment, operational expertise and decades-long experience growing leading software companies position Foundation Software to optimize its service offerings, further grow its customer base and continue its growth trajectory. As part of the transaction, Founder & CEO Fred Ode will maintain a minority ownership in the company.
The transaction is subject to customary closing conditions and regulatory approvals. Terms of the transaction were not disclosed.
Fred Ode, Founder & CEO of Foundation Software, said, “We built Foundation Software into a dominant force in the construction accounting software industry through a dedication to continuous improvement and a commitment to excellence for our customers. We remain laser focused on this mission, and through our partnership with Thoma Bravo, we gain significant new capital and operational expertise that allows us to supercharge our growth initiatives, continue innovating and become an even stronger company. This is the right transaction at the right time for Foundation Software, and I am confident that we have found a trusted partner that will help us maintain our leading industry position.”
Carl Press, a Principal at Thoma Bravo, said, “Over the past 35 years, Fred and his team have built Foundation into the most trusted provider of accounting software to the construction industry. The company’s firm grasp on the complexities of its customers’ needs and its dedication to service combine to create an unmatched suite of solutions that has allowed Foundation to consistently grow its market share and maintain a resilient customer base. We’re honored and thrilled to partner with Fred, President Mike Ode, and the Foundation Software team to drive continued growth and innovation.”
Mike Ode, President of Foundation Software, said, “We are excited to partner with Thoma Bravo, a firm that appreciates our history, truly understands our business and is uniquely positioned to help us better serve our clients and maximize our potential. Fred and I could not be more excited to have Thoma Bravo in our corner as we enter this exciting new phase with our employees and customers and continue to build on our success story.”
Committed financing for the transaction is being provided by funds managed by affiliates of The Private Credit Group of Goldman Sachs Asset Management, L.P., BlackRock US Private Credit and Interbank. Kirkland & Ellis is serving as legal advisor to Thoma Bravo. Benesch, Friedlander, Coplan & Aronoff is serving as legal advisor to Foundation Software.
About Thoma Bravo
Thoma Bravo is a leading private equity firm focused on the software and technology-enabled services sectors. With a series of funds representing more than $45 billion in capital commitments, Thoma Bravo partners with a company’s management team to implement operating best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings, with the goal of increasing the value of the business. The firm has offices in San Francisco and Chicago. For more information, visit thomabravo.com.
About Foundation Software
Foundation Software is a national software developer that, for the past 35 years, has provided contractors with America’s #1 construction accounting software®; FOUNDATION®. In addition to their core job cost accounting product, the company also offers both project management and mobile tools that help contractors to effectively run the business side of construction. Payroll4Construction.com compliments the organization’s software offerings by delivering a payroll processing and construction reporting service also exclusive to the construction industry. The company has been recognized locally and nationally for its innovative products, corporate growth, and as a top workplace. For more information, call (800) 246-0800 or email firstname.lastname@example.org.