Fri, Apr 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Movers and Shakers: TA Associates Takes Majority Stake In Accruent

Monday, December 02, 2013

By: Bailey McCann, Private Equity Strategies

Boston-based TA Associates, a global growth equity firm is taking a majority stake in Accruent. Accruent provides real estate and facilities management software and has been in business since 1995. TA took over the majority interest from another private equity firm, Vista Equity Partners, which will still maintain a significant, although not controlling interest in the business.

Accruent provides market planning, site selection, project management, lease administration, facilities and space management software that is purpose-built for specific industries. TA Associates makes growth equity investments globally, and has to date raised approximately $18 billion in capital and invested in more than 430 companies.

Vista Equity Partners has had a four-year interest in the firm, overseeing four strategic acquisitions. Accruent is now the largest independent provider of this type of software. The customer base has grown from 400 to over 1,200 customers that use the company’s software in 56 countries.

Typically, growth equity stories go to newer companies, but Hythem T. El-Nazer, a Director at TA Associates explains that TA still sees significant opportunities for growth. “Over the last decade or so we have done several transactions where we are recapitalizing a business and partnering with existing investors. I think it was a real positive in our mind that Vista wanted to stay,” he tells Private Equity Strategies. “This is a new relationship for us with Vista, but we are very comfortable with the team.”

In a recent report, Gartner estimates that, “By 2015, more than 75% of the Forbes Global 2000 companies will manage the No. 2 enterprise budget item (facilities) with Integrated Workplace Management Systems (IWMS). The C-suite is beginning to take notice of the enterprise’s second largest budget item — the life cycle of its facilities portfolio — and to seek an integrated solution to its management.”

Over the last four years, Accruent has updated its business model and products from on-premise software to cloud-based solutions that are easier and less expensive for customers to implement. One hundred percent of the company’s new software revenue is now derived from cloud products. The company has posted 15 consecutive quarters of EBITDA growth while increasing customer satisfaction by 39% and attaining customer retention of 96% during this period.

Over the near term it looks like Accruent will remain private, when asked about an exit strategy, El-Nazer, said, “When we make our investments we don’t always look at an exit strategy. We believe that as the company executes there will be a variety of opportunities to consider. Accruent has many of the hallmarks of a TA company; it is growing and has a solid product offering. The market for their services is still fragmented and we think that will provide organizing and acquisitional opportunities for us to take advantage of.”

He expects similar transactions over the coming year. “2013 was similar to 2012 for us – very active dealflow. We expect that to continue through 2014.”

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob