Santa Monica-based investment firm Clearlake Capital recently announced that it will sell Brightly Software to Siemens for a whopping $1.88 billion, which is expected to close in the second half of this year.
Under the definitive agreement, Brightly will be sold to the German conglomerate for a $1.58 billion upfront payment, with the remaining $300 million coming from earn-out cash payments.
Brightly is a software-as-a-service provider for cloud-based enterprise asset management and facility operations management. In a 2019 deal with private equity firm Warburg Pincus, Clearlake acquired Brightly, formerly known as Dude Solutions. The acquisition closed for just over $500 million, giving Clearlake a return of more than $1 billion after three years of Brightly’s growth.
Kevin Kemmerer is Chief Executive of Brightly Software and operations consultant for Clearlake’s software businesses.
“We are excited by the progress Kevin and the Brightly team have made in expanding the company into a leading provider of Enterprise Asset Management (Software as a Service) solutions across a wide range of applications, end markets and geographies .” Behdad Eghbali, co-founder and managing partner of Clearlake, and Prashant Mehrotra, managing director of Clearlake, said in a statement. “Over the past three years, we have transformed the company’s operating expense structure to enable efficient growth and significant profitability while improving the quality of the company’s revenue streams.”
Eghbali was named to Business Journal’s 2021 list of the richest Angelenos along with Clearlake co-founder José Feliciano. Both were listed at No. 28 with a net worth of $3 billion.
Excelled geographically and ventured into new end markets while at Clearlake. It also developed and invested in new products such as solutions focused on environmental, social and governance, and sustainability management. Much of the company’s customer base has transitioned to longer-term partnerships, according to a statement. Brightly also made four strategic acquisitions during Clearlake’s investment.
“This is a very exciting day for Brightly as it marks an important milestone in the company’s history having undergone a strategic transformation over the past few years under Clearlake’s leadership,” Kemmerer said in a statement. “Siemens’ acquisition of Brightly represents confidence in our ongoing plans to scale across end markets and geographies, in our ability to expand our market-leading position in enterprise asset management, and in our goal of helping our customers build more sustainable communities. “
An increase in annual recurring revenue of approximately 100% and an increase in earnings before interest, taxes, depreciation and amortization margins have also been achieved by Brightly over the past three years. The North Carolina company today serves more than 12,000 customers in industries such as manufacturing, healthcare, education and public infrastructure, among others.
“Brightly will enable us to jump to the next level of performance for buildings,” said Matthias Rebellius, chief executive of Siemens Smart Infrastructure, in a statement. “By seamlessly sharing data between our offerings, our customers can expect improved efficiencies, reduced downtime and maintenance costs, shorter lifecycles, better data-driven decisions, and happier tenants.”
Rebellius added that the acquisition will accelerate Siemens’ goal of becoming a leading infrastructure software company.