California Software Company to Acquire Levelset for $500M
CARPINTERIA, Calif. – Procore Technologies Inc., a provider of construction management software, announced it has signed an agreement to acquire Levelset, a New Orleans tech company that created an online platform for managing construction liens, in a deal said to be worth roughly $500 million. Procore said the acquisition will add lien rights management to its platform, allow it to manage complex compliance workflows, and improve the payment process in construction. It also presents “future growth opportunities,” the company said in a press release.
“Construction work is hard enough — getting paid shouldn’t be,” said Procore Founder and CEO Tooey Courtemanche. “Levelset helps the construction industry get paid faster, and their offering will be a perfect addition to the Procore platform. This acquisition will also give Procore access to industry data, including payments and compliance activity, allowing us to deliver valuable risk intelligence to our customers, and to develop innovative financial products.”
Procore said the risks and complexity of moving money between stakeholders in the construction industry “traps vast sums of critical working capital each year. This causes cash stress to contractors, increases their working capital and bonding expenses, and negatively impacts construction jobs.”
“Our solution gets people paid faster, with less cash stress,” said Scott Wolfe Jr., who created Levelset in 2008. “Over 250,000 users have deployed Levelset on more than 6.5 million construction projects. This activity generates highly reliable payment and relationship data. Together with Procore, we can further empower the industry to get paid faster, with better visibility and smoother documentation.”
Levelset has been a Procore App Marketplace partner since April 2018. The company said that more than 3,300 customers use its lien rights management solution to manage compliance workflows.
Procore said it will acquire Levelset for a purchase price of approximately $500 million, which will consist of approximately $425 million in cash and approximately $75 million in stock. The closing of the transaction is anticipated to occur in the fourth quarter of this year.
Levelset’s headquarters are on Josephine Street in the Garden District — and it has offices in Austin as well as Cairo, Egypt.
D.A. Davidson is serving as exclusive financial advisor and Jones Walker LLP is acting as legal counsel to Levelset. Cooley LLP is serving as legal counsel to Procore.