Accruent Continues Its Acquisition Spree With Its Well-Timed Purchase of Lucernex To Tap Lease Accounting Opportunities
On 9 August 2017, real estate, facilities and asset management software provider Accruent announced it has acquired Integrated Workplace Management System (IWMS) vendor Lucernex. Genstar Capital-backed Accruent plans to use this latest acquisition to support it in targeting emerging lease accounting opportunities, as the major accounting boards FASB and IASB require organizations to bring all leases on balance sheet in 2019. This follows a furore acquisition activity by Accruent, witness its 2016 purchases of BIGCenter, Mainspring Healthcare Solutions and Verisae.
Accruent’s purchase of US-headquartered Lucernex is consistent with its history of acquiring industry-specific and best-of-breed solutions. Lucernex’s strengths are in lease management, where it has made strong traction with US retailers which can hold thousands of equipment and property leases. Notably, it is ready to run the lease accounting calculations to capitalize leases for the balance sheet. Its software for lease accounting calculations has been verified by accountants Skoda Minotti. Lucernex has also been growing strongly, in 2016 it reported a 65% growth in new customers and 90% growth in revenue compared to the previous year.
Accruent now owns a roster of industry-specific and specialist software solutions for managing real estate and facilities. As it runs a product integration programme through to 2018, it is positioned to provide a platform that is not only broad but also offers a lot of depth and industry-specific functionalities. With prominent IWMS vendors fighting to deliver the most complete software for real estate and facilities life-cycle management, all eyes should be on how well Accruent manages to integrate its various software solutions into a powerhouse IWMS platform.
For more insights into using software to respond to the upcoming lease accounting changes, see our recently published report Using Software To Simplify FASB and IASB Lease Accounting Changes.