Construction management software company RedTeam Software LLC bought a Nashville, Tennessee-based construction tech firm, thanks to an influx of capital from investors.
Orlando-based RedTeam purchased Paskr Inc. for an undisclosed sum, the companies announced Feb. 9. RedTeam raised money from Braemont Capital and previous investor JettyCove to fund the purchase and fuel growth at RedTeam, including new jobs.
While terms of the acquisition and capital raise were not disclosed, RedTeam on Feb. 2 filed a document with the U.S. Securities and Exchange Commission to report it raised $28 million in new funds, which likely was used in this transaction.
Built by contractors
RedTeam developed a construction management software that it boasts is used by more than 100,000 people in the industry. The software allows digital collaboration on construction plans, document management, billing and more.
Paskr's operations fit well in RedTeam's business. The 18-year-old company's construction management solution offers customers' staff the ability to easily bid, build and track projects. The purchase of Paskr lets RedTeam offer customers new solutions ranging from mobile field management software to enterprise-level workflow and management solutions.
“Both RedTeam and Paskr were founded and built by contractors to solve real challenges faced by commercial contractors," said RedTeam CEO Jim Atkinson in a prepared statement.
New jobs
RedTeam envisions more job creation this year. The company expects to employ 100 people before the end of 2022, RedTeam spokesman Jeremy Schulman told Orlando Inno.
RedTeam did not disclose how many people it currently employs, but the firm in 2020 employed 35 people with plans to double that to 70 people by September 2021.
RedTeam was picking up clients and growing before the Covid-19 pandemic, but the sudden switch to remote and hybrid work environments made RedTeam’s software more appealing, founder Michael Wright previously said. That’s because remote work makes digital systems vital for communication between construction firm employees who are in the field and those who are not.
While RedTeam's revenue is unknown, it's growing fast. The company made Inc. magazine's 2021 list of the 5,000 fastest-growing private U.S. companies. RedTeam notched 84% revenue growth in the previous three years, ranking No. 3,832 nationwide.
M&A madness
Meanwhile, mergers-and-acquisitions activity has ramped up due to the pandemic. The global disruption triggered by Covid-19 led many companies to review portfolios and reassess strategies, per a mid-year 2021 update on global M&A industry trends by New York-based PricewaterhouseCoopers (PwC).
That led to many strategic acquisitions and divestitures as companies redirected money and resources into business divisions and activities with the highest growth potential and where they have a distinctive competitive advantage, the report said.
U.S. M&A activity hit $1.4 trillion as of May 2021, a PwC analysis of Refinitiv data showed. The average value for that activity per year from 2016 to 2020 has been roughly $1.8 trillion.
OBJ Digital Producer and Senior Staff Writer Richard Bilbao contributed to this report.
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