K1 Completes GoCanvas’ Strategic Exit to Nemetschek Group

K1 reaches $1.7 billion in liquidity from December 2023

MANHATTAN BEACH, California., July 3, 2024 /PRNewswire/ — K1 Investment Management (“K1”), one of the largest investment firms in the small-cap enterprise software sector, yesterday completed the sale of its portfolio company GoCanvas^®. GoCanvas, a leading provider of fieldworker collaboration software, has been acquired by Nemetschek Group (FRA: NEM), a leading global provider of software solutions for the architecture, engineering, construction, operations (AEC/O) and media industries.

With this discovery, K1 generated a record $1.7 billion from revenues from 9 distribution events in the last seven months

Following K1’s acquisition of GoCanvas in 2019, the company has made significant investments to drive customer-centric innovation and fuel its growth trajectory, with revenues increasing nearly 4x. During the partnership, K1 facilitated the strategic add-on acquisitions of DeviceMagic and SiteDocs, which further strengthened GoCanvas’ market presence and product offerings and solidified its position as a category leader in field force collaboration software. With strong annual recurring revenue (ARR) growth of approximately 20% in recent years, GoCanvas has generated ARR of $ $67 million in 2023.

The sale, which represents a significant milestone for both K1 and GoCanvas, concludes with an all-cash transaction valued at an acquisition multiple of approximately 11.5x 2023 ARR. K1’s initial investment of over 100 million dollars came from the fourth fund, K4, raised in 2018.

Sujit BanerjeeManaging Director, K1 Operations, commented on the strategic exit, underscoring the key role of management in GoCanvas’ success. “The sale of GoCanvas marks another milestone in K1’s ongoing commitment to building category-leading enterprise software companies. We are proud to have partnered with Viyas Sundaram and the entire management team whose dedication and leadership have been instrumental in transforming GoCanvas into a market leader.”

Viyas Sundaram, CEO of GoCanvas, expressed his gratitude for K1’s support and guidance throughout the partnership. “I joined GoCanvas because I believed in K1’s strategic insights and operational expertise. Their unwavering commitment to our vision has been instrumental in our growth and success. Today is a testament to the strength of the partnership between the entire GoCanvas team and K1. Together with Nemetschek, we are well-positioned to leverage the platform we have built and capitalize on the opportunities ahead as we enter this next phase of expansion.”

The transaction underscores K1’s strategic vision and value creation initiatives at a time of increased demand for private equity distributions. With this execution, K1 has generated record $1.7 billion from revenues from nine distribution events in the last seven months.

Headquarters: Manhattan Beach, CaliforniaK1 is committed to building category-leading enterprise software companies that transform industries and increase productivity. Some examples include Apttus (sold Thomas Bravo), Buildium (sold to RealPage, NASDAQ: RP), Certent (sold to insightsoftware), Checkmarx (sold to Insight Partners and Hellman & Friedman), Clarizen (sold to Planview), FMG Suite (sold to Aurora Capital Partners), GoCanvas (sold to Nemetschek Group, FRA: NEM), Granicus (sold to Vista Equity Partners and Harvest Partners), Inthinc (sold to Orbcomm, NASDAQ: ORBC), Litera (sold to Hg Capital), Rave Mobile Safety (sold to TCV; now owned by Motorola Solutions, NYSE: MSI), TeamDynamix (sold to Level Equity), Unified (now owned by iHeartMedia), Workforce Software (sold to Insight Partners), and Zapproved (sold to Exterro).

Moelis & Company LLC served as exclusive financial advisor to GoCanvas. Kirkland & Ellis LLP and Morris, Manning & Martin, LLP served as legal advisors.

About K1

K1 is a leading small-cap investment firm building category leaders in enterprise software. With a mission to change the industry landscape, K1 partners with strong management teams of high-growth software companies, leveraging operations-focused growth strategies to rapidly scale portfolio companies. Since its inception, K1 has worked with over 240 enterprise software companies. K1’s exclusive focus, driven by a single-team, single-office, single-fund strategy, has led to execution for a broad range of portfolio companies.

For more information, visit k1.com or follow K1 Investment Management on LinkedIn.

About GoCanvas

GoCanvas simplifies business automation by replacing outdated processes and documents with a mobile platform. Compatible with smartphones and tablets, it enables seamless information collection and sharing across organizations, providing real-time business insights. Tailored to any business, GoCanvas empowers the workforce, increases the value of data, and improves relationships between coworkers and customer engagement.

About the Nemetschek Group

The Nemetschek Group is a leading global provider of software for digital transformation in the AEC/O and media industries. Its intelligent software solutions cover the entire lifecycle of construction and infrastructure projects and enable developers to optimize their workflows. Customers can plan, construct and manage buildings and infrastructure more efficiently and sustainably, and creatively develop digital content such as visualizations, films and computer games. The software company drives new technologies and approaches such as artificial intelligence, digital twins and open standards (OPEN BIM) in the AEC/O industry to increase productivity and sustainability. We are continuously expanding our portfolio, including through investments in groundbreaking start-ups. More than 7 million users currently design the world with customer-centric solutions from our four segments. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek Group currently employs more than 3,400 experts.

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SOURCE K1 Investment Management