November 25, 2013

TA Associates, a leading global growth private equity firm, today announced it has completed a majority investment in Accruent, LLC, a leading provider of real estate and facilities management software solutions. Existing investor Vista Equity Partners will retain a significant ownership position, while Virgo Capital has exited its investment in Accruent. Additional terms of the investment were not disclosed.

Since 1995, Accruent has offered a comprehensive facilities and real estate management system that delivers long-term, world class operational and financial performance for its customers. The company provides market planning, site selection, project management, lease administration, facilities and space management software that is purpose-built for specific industries to deliver greater customer value. Accruent has been executing a strategy to bring together the best people and products within the real estate and facilities software market to drive innovation and increase the value delivered to customers.

Over the last four years, Accruent has advanced its market leadership by completing four strategic acquisitions to become the largest independent provider of real estate and facilities software. The customer base has grown from 400 to over 1,200 customers that use the company’s software in 56 countries.

“We’ve been tracking the evolution and growth of this category for years and Accruent has clearly emerged as the market leader,” said Hythem El-Nazer, a Director at TA Associates who will join the company’s Board of Directors. “It is a very well-run company and we are excited to support the team’s current strategy and direction. We look forward to partnering with management and Vista Equity to build on Accruent’s success.”

Research firm 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.”¹

Over the last four years, Accruent has transformed 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 also built an extremely strong financial foundation evidenced by successfully achieving 15 consecutive quarters of EBITDA growth while increasing customer satisfaction by 39% and attaining customer retention of 96% during this period.

“Real Estate, Facilities and Site Management represent a large component of enterprise spend and a huge strategic lever,” said Jason P. Werlin, a Principal at TA Associates who will also join the company’s Board of Directors. “The market is fragmented and, until recently, solutions were either painful to implement or incomplete. Accruent’s ability to deliver enterprise class solutions with the ease of cloud deployment is a tremendous opportunity for organizations to unlock value by managing real estate assets in a more strategic manner.”

About TA Associates:
TA Associates is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 430 companies around the world and has raised $18 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries.

¹ Gartner. Predicts 2013: New Trends Bring New Challenges for IT Asset Management and Procurement. Rob Schafer, Alexa Bona, Stewart Buchanan, November 27, 2013.