Cloud-based construction management software provider Buildertrend acquired CoConstruct, a complementary provider of construction project management software for the residential construction industry. The transaction makes Buildertrend the largest construction management software company for home builders, remodelers, and specialty contractors. In 2020, the combined businesses served approximately 23,000 clients, over 1.1 million users, and facilitated over $200 billion in annual construction project value.
Summarizing the acquisition, Buildertrend CEO Dan Houghton said in a prepared statement, “This acquisition positions Buildertrend to significantly expand our market share and continue delivering innovative, value-added solutions that improve client success and efficiency.”
Fresh off the announcement of the acquisition, it's too early to predict what a combined platform might look like. Buildertrend is committed to supporting both platforms moving forward. "We have many wonderful customers on both sides that rely heavily on our software – we will always focus on supporting our existing customers and factoring in their preferences, " explained Houghton. "It’s too soon to say, but if investing more in one product than the other is the final path, that doesn’t mean we will sunset the other product."
The emphasis moving forward, Houghton adds, will be on continuing to listen to customers of both systems to improve the efficiency and accuracy of the two project management solutions. Any changes will stem from what the industry demands. "We are working with two very powerful systems here," Houghton explains, "and [we] believe the strengths of both platforms, and the needs of our customers should guide how we improve our products ... Our goal is to create the best possible platform or set of platforms and services to help this industry succeed in all aspects of business. We intend to be intentional about the discovery process, and thoughtful about what the end product or set of products would mean for our existing customers as well as the market as a whole."
Houghton will lead the combined company alongside co-founders Steve and Jeff Dugger. CoConstruct founder Donny Wyatt will serve as an advisor to lead integration efforts. The transaction positions Buildertrend with an integrated, SaaS-enabled platform that offers flexible project management, bookkeeping, supplies procurement, customer engagement, and payments services to alleviate the most common pain points that lead to costly projects and dissatisfied clients, according to the company.
Charlottesville, Va.-based CoConstruct was founded in 2005 with the mission of bringing residential project management into the 21st century. Buildertrend clients will realize cost savings and efficiencies related to 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 complementary operations and product capabilities, but each with their own unique ways of addressing customer challenges,” Wyatt said. “We’re thrilled to bring together our complementary approaches and build an even stronger platform with the combined teams’ scale and shared culture of innovation.”
Funding for the acquisition was provided through a growth investment in Buildertrend by Bain Capital Tech Opportunities and HGGC. Existing CoConstruct investor Serent Capital is reinvesting in the combined company.