The Capstreet Group, a Houston-based lower middle market private equity firm, has acquired hh2 Cloud Services, a provider of software for the construction industry based in Kaysville. Financial terms of the transaction were not disclosed.
Founded in 2004, hh2 designs and markets modular software that helps construction companies manage their field employees and operations, with streamlined integration into their primary enterprise resource planning (ERP) system software. The system allows contractors to perform essential business functions such as payroll, invoice routing and approval, applications for payment, compliance, daily logging, dispatch, and various human resources tasks with greater ease, efficiency and productivity, the company said. The company’s software integrates with leading construction ERP platforms and multiple project management software platforms.
Capstreet sad that hh2 CEO Devon Dorrity and the senior management team will remain with the company.
“We’re excited to partner with the Capstreet team, leveraging their experience and resources to help us take advantage of new market opportunities and further our growth,” said Dorrity. “Capstreet’s support will be a game-changer for hh2 as we look to add complementary solutions and expand our reach, while continuing to deliver valuable technology and services to our partners and customers.”
“We’re impressed with hh2’s powerful technology and integration capabilities, supported by a talented team, which makes it a strong platform from which to build our future construction software investments,” said Paul De Lisi, partner at Capstreet. “Demand for software solutions in this industry has been growing significantly as companies look for ways to improve their operational efficiency. We look forward to working with Devon and the entire hh2 team as we seek to grow the business both organically and through strategic acquisitions.”
Founded in 1990, Capstreet invests in lower middle market software, tech-enabled services, and industrial business services companies. With over 45 platform investments and over 200 add-on acquisitions since inception, Capstreet’s investment strategy is focused on utilizing its Capvalue Framework to accelerate growth and profitability, and create long-term sustainable businesses, according to a Capstreet release.