Shareholders of Equiem, a software provider focused on the commercial real estate industry, are in advanced discussions to sell a stake to Advent Partners, a mid-market private equity firm. This potential deal, which has not yet been finalized, comes as the Grollo family, known for their influence in Melbourne, seeks to secure a return on their approximately 20 percent stake in the company after over a decade of investment.
Equiem has attracted interest due to its innovative building management software, which currently supports over 800 buildings worldwide. The company’s client roster features prominent names such as JLL, Knight Frank, and Pembroke. In the 2023 financial year, Equiem recorded revenue of around $18.5 million, although it faced challenges with a net loss due to higher expenses on employee benefits.
Strategic Growth Plans and Partnerships
Equiem is prioritizing partnerships that align with its growth ambitions. Sources indicate the company is also considering an overseas acquisition to enhance its market presence. The Grollo family is reportedly eager to finalize the deal, reflecting their long-term commitment to the business.
Other shareholders involved in the process include Regal Funds, SecondQuarter, and Momeni Group. The decision to engage Advent Partners is part of a broader strategy to attract private equity partners that can provide the necessary support for Equiem’s expansion plans.
In recent years, Equiem has made several acquisitions to bolster its capabilities, including the purchase of the European flexible working software company SpaceOS in 2023 and the UK-listed tenant portal Vicinitee. As of two years ago, Equiem held a 30 percent market share in Australia’s premium and A-grade office market, serving key players such as Dexus, GPT, Lendlease, Vicinity, and Stockland.
Advent Partners’ Diverse Portfolio
Advent Partners boasts a diverse portfolio that includes businesses across various sectors, such as the radiology firm Imaging Associates, pricing and rebate management software Flintfox International, and community management tool Social Pinpoint. Their investment in Equiem could signify a strategic alignment in advancing technology within the commercial real estate sector.
As discussions continue, the outcome remains to be seen. The potential partnership may not only provide financial backing but also strategic insights that could propel Equiem to new heights in an increasingly competitive market.
