ServiceTitan Acquires Aspire to Engage in Landscaping; now valued at $ 9.5 billion
July 2, 2021 – 11:10 a.m.
PanARMENIAN.Net – Service Titan, a software provider for craftsmen, co-founded by Armenian immigrants Vahe Kuzoyan and Ara Mahdessian, acquires Aspire software, a software provider specifically for commercial landscapers. Along with this, the company announces another $ 200 million in funding, a G series that values this company to $ 9.5 billion, TechCrunch reports.
Los Angeles-based ServiceTitan is not disclosing the financial terms of the deal, but it comes just after the company raised $ 500 million only in March (when it was valued at $ 8.3 billion dollars) – money she had earmarked at the time for acquisitions.
Used by more 100,000 entrepreneurs To manage their work, ServiceTitan has also confirmed that this is its biggest acquisition to date, costing around hundreds of millions of dollars. Aspire will remain based in Missouri to develop the business further.
Aspire has some 50,000 users and records $ 4 billion in annualized transactions on its platform in areas such as landscaping, snow and ice management, and construction. He never disclosed an appraisal, or how much money he raised. The St Louis, MO firm was previously backed by private equity firm Mainsail Partners.
The agreement not only underlines the breadth and opportunity that remains for building technology to serve the home services space, but also what could be a trend of consolidation, where a smaller number of Companies are building technologies for entrepreneurs and others in the space working across a number of adjacent and related verticals.
ServiceTitan already generates annual recurring revenue of $ 250 million – a figure it shared in March and was not updated – and as of that month it was up 50% from the last year. Part of that growth is simply based on increased use and demand for its software, but part of it is also because the company is expanding what it covers.
ServiceTitan got its start in residential plumbing, HVAC and electrical – the areas where the two founders Ara Mahdessian (CEO) and Vahe Kuzoyan (president) went first because they knew them best from their own businesses. family – but has spread to areas like the garage door, fireplace and other areas, as well as commercial property, on its own steam.
In other markets like landscaping or pest control, the expertise is more specialized, however, so it makes sense to make acquisitions in these areas to bring this software and teams to manage and build it, in order to further diversify the business. (ServicePro, a pest control company, was acquired in February.)
ServiceTitan, the biggest player in software right now, is likely to continue to make more deals to grow his own empire, but he added that he would also use the funding to grow more organically, with investments in customer service, R&D and to hire more people at all levels.