Clearlake Capital Group, L.P. recently announced it agreed to sell Brightly Software, Inc. to Siemens AG for $1.575 billion of upfront cash consideration, along with $300 million in cash earn-out payments, for a total of $1.875 billion. The transaction is expected to close in the second half of 2022 and is subject to customary closing conditions and regulatory approvals.
“This is a very exciting day for Brightly as it represents an important milestone in the company’s history after going through a strategic transformation over the past few years under Clearlake’s guidance,” Brightly Software CEO Kevin Kemmerer said. “Siemens’ acquisition of Brightly represents confidence in our ongoing plans to scale across end-markets and geographies, our ability to accelerate our market leadership position in enterprise asset management, and our goal to help our clients create more sustainable communities. We are proud and grateful to Clearlake of the work we have done together.”
Brightly is a software-as-a-service (SaaS) provider of cloud-based enterprise asset management and facility operations management. Clearlake acquired Brightly, formerly known as “Dude Solutions,” in June 2019 and subsequently executed on its O.P.S.® strategy by partnering with management to support the company through multiple organic and inorganic strategic initiatives.
“We are thrilled by the progress made by Kevin and the Brightly team as the company has expanded to become a leading provider of enterprise asset management SaaS solutions across a broad range of applications, end-markets, and geographies,” said Behdad Eghbali, Co-Founder and Managing Partner, and Prashant Mehrotra, Partner and Managing Director, at Clearlake. “Over the past three years, we have transformed the operating expense structure of the business to enable efficient growth and significant profitability, while improving the quality of the Company’s revenue streams.
“We are particularly pleased with Brightly’s progress leveraging the best practices from the Clearlake software portfolio to become a high performing SaaS platform, and we believe the foundation Kevin and the management team have established positions the Company for continued growth under Siemens’ ownership.”
During Clearlake’s investment in Brightly, the SaaS provider expanded into new end-markets and additional locations while it simultaneously enhanced its product suite in its current markets by developing and investing in new product offerings. These included solutions with a focus on environmental, social and governance (ESG) and sustainability management.
Meanwhile, by leveraging Clearlake’s best practices from its software investment portfolio, Brightly reconfigured its go-to-market motion and transitioned many customers to a longer-term partnership model. These efforts were supplemented by executing on four strategic acquisitions, including Assetic, Confirm, Energy Profiles, and Facility Health.
These initiatives, which occurred under Clearlake’s three-year ownership, led to an approximately 100 percent increase in annual recurring revenue and a significant expansion in the Company’s EBITDA margins. Brightly currently has a global customer base with more than 12,000 clients across education, public infrastructure, manufacturing, healthcare, commercial real estate, and other end-markets. Meanwhile, Verdantix, an award-winning independent research firm, recently recognized Brightly as a “Leader in Enterprise Asset Management Software.”
“Brightly will enable us to leapfrog to the next level of performance for buildings,” Matthias Rebellius, Member of the Managing Board of Siemens and CEO of Siemens Smart Infrastructure said. “With seamless data exchange between our offerings, our customers can expect enhanced efficiency, lower downtimes and maintenance costs, shorter lifecycles, better data-driven decisions and more satisfied tenants. The acquisition will speed up our target of becoming a leading software company also in infrastructure and support our vision of creating fully autonomous buildings that continuously learn from and adapt to the needs of their tenants.”
Kevin Kemmerer, Chief Executive Officer at Brightly Software, said, “This is a very exciting day for Brightly as it represents an important milestone in the Company’s history after going through a strategic transformation over the past few years under Clearlake’s guidance. Siemens’ acquisition of Brightly represents confidence in our ongoing plans to scale across end-markets and geographies, our ability to accelerate our market leadership position in enterprise asset management, and our goal to help our clients create more sustainable communities. We are proud and grateful to Clearlake of the work we have done together.”