Transaction · Vertical SaaS Payments · 2021

Procore / Levelset 2021

Procore Technologies acquired Levelset for $500M on September 23, 2021.

Target
Levelset
Acquirer
Procore Technologies
Deal value
$500M
Deal type
Mixed
Announced
September 23, 2021
Sub-sector
Vertical SaaS Payments

Transaction overview

  • Procore announced the acquisition of Levelset on September 23, 2021 for approximately $500 million.
  • Consideration was a mix of cash and Procore stock.
  • The deal closed on October 29, 2021.
  • Levelset is a New Orleans-based SaaS company that automates lien rights and payment workflows for construction firms.
  • Levelset served over 3 million construction professionals at the time of the deal.
  • Procore is a cloud-based construction management platform that went public on the NYSE in May 2021.
  • Procore acquired Levelset to add payment and lien management tools to its existing project management software.

Why it matters

  • The deal brought lien waiver and payment compliance tooling into a construction management platform for the first time at scale.
  • At $500 million, it was one of the largest acquisitions of a construction fintech company to that point.

Strategic rationale

Procore picks up construction payments and lien rights platform to extend its construction OS into financial workflows and payment risk management.

Deal terms & multiples

Deal value
$500M
Target revenue
Not disclosed
Target EBITDA
Not disclosed
EV / Revenue
Not disclosed
EV / EBITDA
Not disclosed
Announcement
September 23, 2021
Close date
October 29, 2021
Acquirer
Procore Technologies (Strategic)
Target HQ
United States
Deal type
Mixed
Consideration structure
Mixed cash and stock
Regulatory status
Closed October 29, 2021; no material regulatory conditions publicly reported
Acquirer ticker
NYSE: PCOR

About Levelset

Levelset was founded in 2012 and headquartered in New Orleans, Louisiana. The company built software that helps contractors, subcontractors, and suppliers manage lien rights, send preliminary notices, and accelerate payment on construction projects. Its platform automated much of the paperwork-heavy compliance process that governs payment disputes in the construction industry. Levelset raised roughly $85 million in venture funding before the acquisition.

Founded
2012
HQ
United States
Prior funding
~$85 million total venture funding
Key metric
Over 3 million construction professionals on the platform at time of acquisition

About Procore Technologies NYSE: PCOR

Procore Technologies is a cloud-based construction management software company founded in 2002 and headquartered in Carpinteria, California. Its platform covers project management, financial management, and field operations for general contractors, owners, and specialty contractors. Procore went public on the NYSE in May 2021, raising approximately $635 million in its IPO at a valuation above $9 billion. The company reported over $514 million in revenue for fiscal year 2021.

Founded
2002
Ticker
NYSE: PCOR

Frequently asked questions

How much did Procore pay for Levelset?

Procore paid approximately $500 million in a mix of cash and stock. The deal was announced September 23, 2021 and closed October 29, 2021.

What does Levelset do?

Levelset makes software that automates lien rights management, preliminary notices, and payment compliance for construction companies. Its tools help contractors and subcontractors get paid faster and avoid payment disputes.

Why did Procore acquire Levelset?

Procore bought Levelset to add payment and lien management capabilities to its construction management platform. The acquisition extended Procore's reach into financial workflows that sit alongside its existing project and field management tools.

Where is Levelset headquartered?

Levelset is headquartered in New Orleans, Louisiana. It was founded in 2012.

How much funding had Levelset raised before the acquisition?

Levelset had raised approximately $85 million in venture funding before Procore acquired it.

Is Procore a public company?

Yes. Procore trades on the NYSE under the ticker PCOR. The company went public in May 2021, roughly four months before announcing the Levelset deal.

Sources