PROCORE TO BUY LEVELSET, SIMPLIFYING CONSTRUCTION LIEN MANAGEMENT WORKFLOWS

Burdensome compliance workflows contribute to the construction industry’s median of 90 days sales outstanding and 74 days payable outstanding, the slowest of all industries surveyed across the globe. (Graphic: Business Wire)

KUALA LUMPUR, Sept 23 (Bernama) -- Procore Technologies Inc, a leading provider of construction management software, has signed a definitive agreement to acquire Levelset, an acquisition adding lien rights management to the Procore platform and enabling it to manage complex compliance workflows and improve construction payment process.

It also presents future growth opportunities for Procore, including capitalising on the companies’ complementary data assets.

Procore Founder and CEO Tooey Courtemanche said: “Construction work is hard enough — getting paid shouldn’t be. 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.”

In construction, the risks and complexity of moving money between stakeholders traps vast sums of critical working capital each year, causing cash stress to contractors, increasing working capital and bonding expenses, and negatively impacting construction jobs.

According to a statement, burdensome compliance workflows contribute to the construction industry’s median of 90 days sales outstanding and 74 days payable outstanding, the slowest of all industries surveyed worldwide.

Levelset CEO Scott Wolfe Jr said: “Together with Procore, we can further empower the industry to get paid faster, with better visibility and smoother documentation.”

Procore has agreed to acquire Levelset for a purchase price of approximately US$500 million, which will consist of approximately US$425 million in cash, subject to customary adjustments for working capital, transaction expenses, cash and indebtedness, and approximately US$75 million in Procore common stock. (US$1 = RM4.192)

Over one million projects and more than US$1 trillion in construction volume have run on Procore's platform. Headquartered in Carpinteria, California, Procore has offices worldwide.

-- BERNAMA