Chicago-based private equity firm Thoma Bravo has agreed to acquire Foundation Software, a construction-centric company based in Strongsville, Ohio. While terms of the deal were not disclosed, Thoma Bravo sees the venture as a “strategic investment” in Foundation, which joins the firm’s robust portfolio of software companies. Foundation is a leading provider of accounting software and payroll services for specialty contractors and has grown from the ground up since its founding in 1985. The company’s suite includes an industry-leading job cost estimating platform for detailed reporting and budgeting to the penny. Now with the operational expertise of Thoma Bravo backing it up, the company hopes to optimize its current offerings, expand its customer base, and continue its upward trajectory of growth. Thoma Bravo boasts decades of experience growing companies into market leaders in the software and technology-enabled services sector.
For over 30 years, Foundation has been owned and operated by Fred Ode, whose stated goal has been to grow a “dominant force in the construction accounting software industry.” Ode will retain a minority share in the company while he and his son, Foundation’s President Mike Ode, will continue to lead their workforce of nearly 300 employees. In 2019, Foundation reported nearly $45 million in revenue, thanks to their innovative products and creative staff. In addition to their award-winning construction accounting software, the Odes also operate Payroll4Construction.com, which provides valuable payroll processing and reporting services exclusively to construction organizations.
Carl Press, a Principal at Thoma Bravo, noted in a press release that “Fred and his team have built Foundation into the most trusted provider of accounting software to the construction industry. The company's firm grasp on the complexities of its customers' needs and its dedication to service combine to create an unmatched suite of solutions that has allowed Foundation to consistently grow its market share and maintain a resilient customer base.”
With more than $45 billion in capital investments, Thoma Bravo partners with management teams to grow the value of burgeoning companies in the software services market, providing the tools for accelerated growth and profitability. The firm is headquartered in Chicago, with additional offices in San Francisco.
President Mike Ode added, “(We) could not be more excited to have Thoma Bravo in our corner as we enter this exciting new phase with our employees and customers and continue to build on our success story."