Business Wire

Procore to Acquire Levelset to Simplify Lien Management Workflows for Construction

Share

Procore Technologies, Inc., (NYSE: PCOR), a leading provider of construction management software, has signed a definitive agreement to acquire Levelset. This acquisition will add lien rights management to the Procore platform, enabling Procore to manage complex compliance workflows and improve the payment process in construction. It also presents future growth opportunities for Procore, including capitalizing on the companies’ complementary data assets.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210922005931/en/

To view this piece of content from mms.businesswire.com, please give your consent at the top of this page.

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)

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. This causes cash stress to contractors, increases their working capital and bonding expenses, and negatively impacts construction jobs. 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.

In the U.S., liens are foundational to these compliance workflows. Construction stakeholders spend considerable time and energy managing lien rights — from those downstream looking to preserve lien rights and having to comply with the nuances of lien law that varies from state to state, to upstream stakeholders constantly procuring lien waivers at the point of payment to ensure their projects are free and clear. Similar payment challenges and complexities also exist globally.

Levelset CEO Scott Wolfe, Jr. said, “Our solution gets people paid faster, with less cash stress. Over 250,000 users have deployed Levelset on more than 6.5 million construction projects. This activity generates highly reliable payment and relationship data. Together with Procore, we can further empower the industry to get paid faster, with better visibility and smoother documentation.” Levelset has been a Procore App Marketplace partner since April 2018. Today, over 3,300 customers use its lien rights management solution to manage compliance workflows.

Details Regarding the Acquisition

Procore has agreed to acquire Levelset for a purchase price of approximately $500 million, which will consist of approximately $425 million in cash, subject to customary adjustments for working capital, transaction expenses, cash and indebtedness, and approximately $75 million in Procore common stock. The closing of the transaction is anticipated to occur in the fourth quarter of this year and is subject to customary closing conditions.

D.A. Davidson is serving as exclusive financial advisor and Jones Walker LLP is acting as legal counsel to Levelset. Cooley LLP is serving as legal counsel to Procore.

Additional details and information about the terms and conditions of the acquisition will be available in a current report on Form 8-K to be filed by Procore with the Securities and Exchange Commission.

Conference Call Information

Procore will host a conference call today, September 22, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time, to discuss the acquisition. A live webcast of the conference call, as well as a replay of it, will be available at investors.procore.com. The conference call can also be accessed by dialing 877-284-6233 (U.S.) or 873-415-0281 (International) and entering conference ID: 2838218.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about Procore and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release are forward-looking statements of Procore’s future operating results and financial position, its business strategy and plans, market growth and trends, and objectives for future operations. Forward-looking statements generally relate to future events or Procore’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions that concern Procore’s expectations, strategy, plans or intentions. Important risks and uncertainties that could cause Procore’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) risks associated with (a) the possibility that the closing conditions to the transaction with Levelset may not be satisfied or waived in a timely manner or at all, including that a governmental entity may prohibit, delay or refuse to grant a regulatory approval, (b) the failure to complete or receive the anticipated benefits from the transaction, including due to Procore’s inability to successfully integrate Levelset into its business, (c) diverting management attention from ongoing business operations, (d) the commencement or outcome of any legal proceedings that may be instituted against Procore or Levelset in connection with the proposed transaction and (f) the effects of the transaction on the combined business, including on operating costs, customer loss and business disruption; (ii) changes in laws and regulations applicable to Procore’s or Levelset’s business model; (iii) changes in market or industry conditions, regulatory environment and receptivity to Procore’s or Levelset’s technology and services; (iv) results of litigation or a security incident; (v) the loss of one or more of Procore’s or Levelset’s key customers or partners; (vi) the impact of COVID-19 on Procore’s or Levelset’s business and results of operations; (vii) changes to Procore’s or Levelset’s abilities to recruit and retain qualified team members; and (viii) the risks described in the other filings Procore makes with the Securities and Exchange Commission from time to time, including the risks described under the heading “Risk Factors” in Procore’s Final Prospectus dated May 19, 2021 and its Quarterly Report on Form 10-Q, which should be read in conjunction with its financial results and forward-looking statements. Moreover, Procore operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for Procore to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

All forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Procore undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Procore may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements, and you should not place undue reliance on its forward-looking statements. Procore’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.

About Procore

Procore is a leading provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Our platform connects every project stakeholder to solutions we've built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's Marketplace has a multitude of partner solutions that integrate seamlessly with our platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices around the globe. Learn more at Procore.com.

About Levelset

Levelsetis a construction software company that helps the construction industry simplify compliance and payment processes, decrease financial risks, and improve cash flow. The results are faster payments, reliable access to capital, and fewer surprises. Levelset is headquartered in New Orleans, Louisiana, with offices in Austin, Texas, and Cairo, Egypt, and has approximately 300 employees. Learn more at Levelset.com.

PROCORE-IR

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Media Contact
Roohi Saeed
press@procore.com

Investor Contact
Matthew Puljiz
ir@procore.com

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Amedeo and AURA AERO Announce a Strategic Partnership Agreement and a Letter of Intent to Purchase 200 Electric Regional Aircraft (“ERA”)19.10.2021 19:21:00 CEST | Press release

AURA AERO has created a clean sheet design while integrating new technologies, as well as existing technologies such as fly by wire, and is driving digital efficiencies to build revolutionary momentum in creating an electrical aircraft. With its current prototype aircraft, INTEGRAL, AURA AERO is achieving design and production maturity at a fraction of the cost and will carry that to the commercially sized 19- seater, Electric Regional Aircraft named ‘ERA’. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211019006068/en/ “Amedeo are delighted to have signed an LOI for 200 Electric Regional Aircraft ‘ERA,’ that draws the commercial aviation industry closer to achieving its goal of net-zero by 2050. We are very pleased to be partnered with AURA AERO in leading such an important climate supporting initiative for the future. For Amedeo, sustainable aviation is more than aspirational and we are committed and focused on partnership

JAB and BNP Paribas Cardif Announce Strategic Pet Healthcare Alliance19.10.2021 18:37:00 CEST | Press release

JAB and insurer BNP Paribas Cardif today announced a strategic alliance to deliver a range of pet insurance services throughout the UK, EMEA and Latin America, with a vision to offer additional pet healthcare services over time. As part of the agreement, JAB will hold a majority stake in a new holding company to which BNP Paribas Cardif will contribute Cardif Pinnacle, its subsidiary focused on the rapidly growing pet insurance sector. BNP Paribas Cardif will remain significantly involved in the pet healthcare activity, supporting the development of this alliance through a continued stake in the business. The transaction is expected to close in Q2 2022, subject to customary closing conditions, including applicable regulatory approvals. Cardif Pinnacle has built a leading pet insurance business providing solutions to partners and pet owners based on innovation and a scalable platform. The Company’s business proposition leverages digital services, artificial intelligence and continuous i

Leading South Korean Furniture Manufacturer Empowered to Focus on IT Modernization Goals After Switching to Rimini Street Support19.10.2021 18:00:00 CEST | Press release

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced that ENEX, a leading furniture manufacturer in South Korea, has switched to Rimini Street Support for its mission-critical SAP system. As a result of switching support providers, ENEX was able to immediately reduce its annual support fees and redirect its internal IT personnel to focus on higher value business initiatives, including plans to update and modernize its IT infrastructure. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211019005188/en/ Leading South Korean Furniture Manufacturer Empowered to Focus on IT Modernization Goals After Switching to Rimini Street Support (Photo: Business Wire) Switching to Ultra-Responsive Support and Maintenance Helps Drive Digital Transformation Founded in 1971, ENEX is

ElectReon and Gotland Partners Announce First Fully Operational Electric Bus Utilizing Wireless Electric Road System in Sweden19.10.2021 17:38:00 CEST | Press release

ElectReon (TASE: ELWS.TA), the leading provider of in-road wireless electric vehicle charging technology for commercial, public service, and passenger vehicles, announced today the successful launch of the first fully operational bus utilizing the company’s wireless charging infrastructure in the city of Visby in Gotland, Sweden. Implemented by a consortium of partners, the Smartroad Gotland project began operations in early 2020 and is one of four Electric Road demonstration projects currently being funded by the Swedish Transport Administration, Trafikverket. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211019005925/en/ The Smartroad Gotland project is the first fully operational bus utilizing wireless charging infrastructure in the city of Visby in Gotland, Sweden. (Photo: Business Wire) Having supported Electric Road Systems (“ERS”) R&D programs for over a decade, Sweden is a pioneer in pursuing multiple ERS demonstrat

Berkshire Hathaway Specialty Insurance Elevates Multinational Capabilities, Creating Global Network Across 170 Countries19.10.2021 15:30:00 CEST | Press release

Berkshire Hathaway Specialty Insurance (BHSI) today announced that it has expanded its global network to encompass owned offices and network partners that can provide BHSI customers with locally admitted insurance policies in 170 countries worldwide. “We are very pleased to welcome so many outstanding partners around the globe to the BHSI family,” said David Valzania, Head of Multinational, BHSI. “Each of these carriers share BHSI’s values, and align with our product offerings, focus on excellent customer service, and commitment to the CLAIMS IS OUR PRODUCT® philosophy.” BHSI undertook a rigorous search, evaluation and due diligence process to select the carrier partners best suited to represent the Berkshire Hathaway brand and our customers. Policies issued by network partners receive the backing of BHSI’s financial strength. “Our multinational capabilities have been growing rapidly. With our expanded network, we look forward to providing consistently world-class products and services

Andersen Global Continues Asia Expansion with One of Indonesia’s Largest Tax Firms19.10.2021 15:30:00 CEST | Press release

Andersen Global enters the Indonesian market with collaborating firm Soewito, Fajar & Partners, operating as TaxPrime, one of the largest tax firms in the country. TaxPrime was founded in 2012 by Senior Partner Soewito and Managing Partner Muhamad Fajar Putranto, who previously served as tax officers for Indonesia’s Directorate General of Taxes (DGT). With three offices, the Jakarta-based firm operates with nine Partners, three Senior Advisors and more than 170 professionals, focusing on multinational companies with full-service capabilities in tax and customs compliance, tax and customs advisory, transfer pricing, tax and customs dispute resolution, international tax and structuring transactions. “Our firm is committed to delivering best-in-class service, and we constantly aim to expand our expertise,” Fajar said. “Our collaboration with Andersen Global emphasizes our commitment to serving clients with global operations in a seamless manner, and we look forward to working with the lik

JAB Expands Pet Insurance Platform Through Acquisition of Figo Pet Insurance19.10.2021 15:00:00 CEST | Press release

JAB is pleased to announce that Independence Pet Holdings (formerly Iguana Capital), JAB’s U.S. pet insurance platform, has entered into a definitive agreement to acquire Figo, one of the leading U.S. providers of pet insurance. As part of the agreement, the shareholders of Figo will roll a portion of their proceeds into PetPartners, the consumer-facing portion of JAB’s pet insurance platform. The acquisition is expected to close by the end of the year. Since its founding in 2015, Figo has quickly established a strong pet insurance brand and leading InsurTech position in the United States. Its modern pet insurance experience includes a simple, easy-to-follow consumer journey coupled with its Pet Cloud app, a cloud-based platform that provides 24/7 access to live veterinarians, customer support, claims processing, digital pet record management, and a social network for pet parents, all of which has driven impressive company growth, earning Figo the title of “Top InsurTech Leader” by A.M