OfficeSpace Deal Confirms The Workplace Software Market Will Continue To Be A Hotbed Of Investor Activity
On December 17, 2019, private equity firm Resurgens Technology Partners announced it has invested in workplace management software vendor OfficeSpace Software. Headquartered in New York, OfficeSpace Software provides space planning tools and workplace engagement apps to 600 customers across 50 countries. The software vendor plans to leverage its injection of funding for product development and to support its push for further international growth.
This deal follows a slew of investment by other technology-focused PE and VC funds into workplace management software. For example, in May 2019, VC firm Tola Capital invested $20 million into room booking vendor Robin. FM:Systems (owned by Accel-KKR) acquired space analytics software vendor Rifiniti in July and workplace software vendor Asure in October for $120 million. More recently, in December Insight Partners led a $34 million Series B investment round into tenant engagement app provider HqO.
SaaS businesses are becoming an increasing focal point for PE and VC funds given their recurring revenues and scalable business models with the potential to grow very fast. The workplace software market has many attractive features for an investor; it is growing at a 11% CAGR and holds the potential for long-term growth as firms continue to extend agile working programmes. There have also been some proof points that investors can achieve high multiples. Witness Main Capital selling IWMS vendor Axxerion (with revenues of €12 million) to the Nemetschek Group for €75 million in January 2019.
The OfficeSpace Software deal highlights the workplace software market continues to be a focal point for investors. While there are a good number of remaining attractive firms, PE and VC funds need to determine their strategy quickly if they want to get in on the act with the highest performers in the workplace software market. To learn more about the investment trends across the broader proptech market, read the Verdantix report Investment In Proptech Firms Jumps To $6 Billion In 2019.