ServiceTitan acquires Aspire to move into landscaping; now vallued at $9.5B
July 2, 2021 – 11:10 a.m.
PanARMENIAN.Net – ServiceTitan, a software provider for craftsmen that was co-founded by Armenian immigrants Vahe Kuzoyan and Ara Mahdessian, is taking over Aspire Software, a software provider specially designed for commercial landscapers. At the same time, the company is also announcing an additional $ 200 million financing, a Series G that values that company at $ 9.5 billion, TechCrunch reports.
Los Angeles-based ServiceTitan won’t disclose the financial terms of the deal, but it does follow the company, which only raised $ 500 million in March (when it was valued at $ 8.3 billion) – money it did intended for acquisitions at the time.
ServiceTitan is used by over 100,000 contractors to manage their work and also confirms that this is the largest acquisition to date, valued at approximately hundreds of millions of dollars. Aspire will remain based in Missouri to expand the company from there.
Aspire itself has approximately 50,000 users and has annualized $ 4 billion in transactions on its platform in areas such as landscaping, snow and ice management, and construction. She never gave a rating or how much money she raised. The St. Louis, MO company was previously supported by growth equity firm Mainsail Partners.
The deal underscores not only how broad the reach and capabilities of building technology will remain to serve the home services space, but also what could be a consolidating trend in it, with a smaller number of companies using technology for contractors and others Work area that spans a number of adjacent and related verticals.
ServiceTitan’s annual recurring revenue is already $ 250 million – a number it shared in March and hasn’t updated – and for that month it was up 50% year over year. Part of that growth is simply based on increased usage and demand for its software, but part of it has also to do with the company expanding its coverage.
ServiceTitan started in the plumbing, HVAC and electrical sectors – the areas in which the two founders Ara Mahdessian (CEO) and Vahe Kuzoyan (President) took the first steps because they knew them best from their own family businesses – but expanded into areas such as garage doors, chimneys and other areas as well as commercial real estate from their own resources.
However, in other markets such as landscaping or pest control, the expertise is more specialized, so it makes sense to make acquisitions in these areas to take over these software and teams to manage and build them to further diversify the company. (ServicePro, a pest control company, was acquired in February.)
ServiceTitan, currently the largest software company, is likely to continue to do more business to grow its own empire, but it added that it will also use the funding to expand more organically, with investments in customer service, research and development, and places Invite more people across the board.