CBRE Group, Inc. this week announced a significant strengthening of its ability to deliver integrated solutions for occupier clients with the acquisition of FacilitySource, LLC, a provider of technology-based procurement and facilities management solutions. CBRE is purchasing FacilitySource from Warburg Pincus, a global private equity firm focused on growth investing. The acquisition of FacilitySource (FS) will help commercial real estate services and investment firm giant CBRE build a tech-enabled supply chain capability that is unique in the occupier outsourcing industry and intended to drive meaningfully differentiated outcomes for leading occupiers.
CBRE’s existing occupier outsourcing offering will be enhanced through FacilitySource’s proprietary SaaS technology platform, a staff of approximately 550 professionals, 25,000+ qualified service providers, the FS Elite vendor development program, and a dedicated 24/7 operations support center.
FacilitySource’s services are grounded in advanced analytics capabilities that tap into unique performance data gathered over a dozen years across $3 billion of annualized spending. The company supports more than 120,000 client locations nationwide for facilities management services, capital-improvement and energy-management projects, with a particular emphasis on large multi-site portfolios.
“FacilitySource materially advances our strategy of creating superior client outcomes through the delivery of integrated solutions – from facilities management to project management to transactions – for leading occupiers,” said Bill Concannon, CBRE’s Global Group President and CEO, Global Workplace Solutions. “We are constantly evolving and extending our service offerings with innovative solutions. In FacilitySource, we have found a company that brings complementary technologies, a rich source of data, and a strong leadership team with a record of growth and deep client commitment.”
Bill Hayden, FacilitySource’s CEO, said: “We built FacilitySource to unlock the power of data and change the facilities management industry. Combining with CBRE enhances our ability to grow quickly, serve large, complex client portfolios, and invest in our leading model. Together, we can accomplish much more than either company could on its own.”
Alex Berzofsky, Managing Director, Warburg Pincus, commented, “Since investing in FacilitySource in 2012, we have been pleased to partner with Bill Hayden and his team as the company has competed successfully, grown significantly and become the innovation leader in integrated facility management services. FacilitySource meets a critical need for large facility portfolios, and we wish them continued success in this next chapter of the business.”
Founded in 2005, FacilitySource’s operations center is in Columbus, OH, with a back-office support center in Phoenix, AZ.
CBRE has acquired FacilitySource for approximately $290 million in cash. This represents another significant investment in the company’s operating platform – a key element of its strategy to deliver superior client outcomes.