The companies said this week the purchase price includes about $425 million in cash and $75 million in Procore stock, The announcement of the deal said Levelset customers have more the 250,000 users. CEO Tooey Courtemanche noted in a webcast this week the acquisition “is the largest in Procore’s history.” The deal is expected to be completed during the fourth quarter of 2021. Procore said Levelset will not be material to results this year, but it will provide more detail about operations in the next earnings call. Levelset will end the year in “low eight-figure revenue count”, CFO Paul Lyandres said during the webcast, with most revenue from subscription. CEO Tooey Courtemanche outlined a vision in which Procore connects “everyone who touches construction”. Besides contractors that includes capital providers and insurance carriers. Procore lost $96.2 million for the year ended December 31, compared to a loss of slightly more than $83 million for 2019. Revenue for the most recently year was $400.2 million, a 38.4-percent rise from $289.2 million the prior year. Analysts on the call were confused by the clue about Levelset revenue, given a reported 300 employees. One said most read the low-eight figure number as indicating $10 million to $20 million in annual revenue while the employee total suggested $50 million in revenue. Lyandres indicated one factor complicating revenue estimates was that Levelset has developers in Cairo, Egypt.
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PROCORE BUYING LIEN SPECIALIST LEVELSET Featured
Construction software vendor Procore Technologies, which went public in May, is acquiring Levelset for $500 million. Levelset, whose products include lien rights management software, will operate as a subsidiary of Procore.