Buildertrend Acquires CoConstruct
authors QR Staff | February 24, 2021
OMAHA, Neb. and CHARLOTTESVILLE, Va.—Buildertrend, a leading provider of cloud-based construction-management software for builders, remodelers and specialty contractors announced the acquisition of CoConstruct, a complementary provider of construction project management software for the residential construction industry.
This transaction makes Buildertrend perhaps the largest construction management software dedicated to empowering independent and custom homebuilders, contractors and remodelers with the tools to coordinate projects, control finances and communicate with clients and crews.
The integrated, SaaS-enabled platform offers project management, bookkeeping, supplies procurement, customer engagement, and payments services. In 2020, the combined business served 23,000 clients, over 1.1 million users and facilitated over $200 billion in annual residential-construction project value.
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 Co-CEO Dan Houghton will lead the combined company, and CoConstruct Founder Donny Wyatt will serve as an advisor to lead integration efforts.
“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 2004 in Charlottesville, Virginia with a mission to bring residential construction project management into the 21st century. The Company has been recognized by Constructech as its No. 1 Software Platform for Construction Collaboration for 10 consecutive years. CoConstruct reflects 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 complimentary operations and product capabilities, but each with their own unique ways of addressing customer challenges,” said Wyatt. “We’re thrilled to bring together our complimentary 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 served as legal adviser to Serent Capital. QR