HCSS, a supplier of estimating, operations, and fleet management software, announced it has entered into a definitive agreement to be acquired by Thoma Bravo, a software investment firm.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the fourth quarter of 2021.
Financial terms of the transaction were not disclosed. HCSS has been privately owned for 35 years and in a press release, said it has found the "ideal strategic partner for the future."
The partnership is designed to benefit HCSS’s customers, employees, and shareholders.
HCSS’s employees own 32% of the company through an ESOP.
Thoma Bravo plans to leverage HCSS' software and industry expertise to help strengthen the company as it expands and enhances its industry leading construction software solutions. Thoma Bravo, whose construction portfolio companies include Command Alkon, will help HCSS continue its culture of innovation and customer centricity, while boosting investment in key areas of the company, according to the press release.
Customers can expect to see innovation and more efficiencies in supply chain software that provides information faster and dramatically reduces administrative work and errors, says Mike Rydin, founder and CEO of HCSS.
“Through this partnership and the innovation and growth it will deliver, my vision is that foremen, superintendents and project managers will be able to easily order materials from the HCSS applications they already use and track the status of those materials at all times through final placement,” Rydin says. “While we have sustained double digit annual growth for more than 20 years, Thoma Bravo’s knowledge of international markets will accelerate growth for all our product suite on a global scale. We’re so grateful for the customers that have brought us this far, and we are committed to keeping our customer first as we move forward. The future looks very bright.”
“Thoma Bravo is the ideal strategic partner for HCSS because of their expertise and focus, but also because of their long-term perspective,” says Steve McGough, president and CFO of HCSS. “It’s the combination of the cultural fit and alignment and their track record of success in helping market-leading businesses drive new levels of growth and maturity that makes this such an exciting partnership.”
“It’s a special moment for us when we have a chance to steward a legacy the likes of which has been created by Mike and his team at HCSS,” says A.J. Rohde, a senior partner at Thoma Bravo. “The heavy construction market is poised to undergo its most significant historical change in both innovation and industry investment, and we can’t wait to see what we can do together with HCSS to enable their customers to stay ahead.”
“HCSS is leading the way in connecting the entire construction ecosystem with real-time production data and visibility that has never existed before,” says George Jaber, a vice president at Thoma Bravo. “We will invest heavily in this initiative and are excited about the benefits it will bring to the company, its employees, and its customers.”
