The construction market has been in a downturn the past few years, but is now beginning to ramp up. As this happens, technology companies are making some big announcements. With an eye on growth, On Center Software, www.oncenter.com, The Woodlands, Texas, announced today a strategic equity partnership with Accel-KKR, www.accel-kkr.com, Menlo Park, Calif., which will allow On Center Software to grow its business.
For an industry that is beginning to emerge from the downturn, the timing is right for On Center Software to grow its lineup of products. In a call with Constructech, Cecilia Padilla, president, On Center Software, say the construction market was in a downturn but is beginning to ramp up, with a higher level of optimism across both commercial and residential construction.
Padilla says On Center Software will keep the same identity and branding, while still running the business as it always has. Padilla also says the transaction, which was completed earlier today, will help On Center Software broaden its reach in the construction lifecycle. While Padilla would not point specifically to types of products, she did say it would make sense to make investments into products that are adjacent to On Center’s typical offerings in the area of takeoff, estimating, and labor management. Overall, she believes this will allow the software company to expand both existing and additional products going forward.
Padilla says Accel-KKR was a good fit for On Center Software, as the partnership will allow On Center to maintain its identity and culture, while helping the company grow. One personnel change of note is the fact Leonard Buzz, who founded On Center Software in 1988 and has been CEO overseeing technology design including development, production, and implementation, has announced his retirement.
Accel-KKR has experience investing in software companies, although this is the company’s first investment in the construction industry. When selecting companies to invest in, the equity firm considers a number of factors including the depth and strength of an organization’s customers, its technology, and its employees. The private equity firm will be a majority investor in On Center Software, and will help grow the business.
For contractors, this news means continued growth and development in construction software. As investment continues in construction, the result will ultimately be greater future development and expansion of construction software.