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Procore Technologies, Inc. has acquired Esticom, a cloud-based estimating and takeoff solution, to enhance its preconstruction capabilities. This strategic move aims to streamline the estimation process, improve cost accuracy, and boost productivity for contractors. The integration of Esticom into Procore's platform is expected to significantly impact the construction industry by reducing project risks and increasing bid success rates.
Founded in 2015, Esticom offers construction takeoff and estimating software designed to enhance efficiency and accuracy in the preconstruction phase. Its core products include 3D takeoff, automated area takeoff, and AI Auto-Count, which streamline the estimation process. Unique in its modern approach, Esticom integrates seamlessly with Procore, allowing for a smooth transition from estimating to construction. This all-in-one platform connects all stakeholders, ensuring data integrity and improved project outcomes.
Procore is a leading provider of construction management software, dedicated to enhancing the efficiency, safety, and financial health of construction projects. The platform offers comprehensive solutions for preconstruction, project execution, resource management, financial management, and construction intelligence. Procore's extensive global reach, with over 3,000,000 projects managed in more than 150 countries, underscores its significant influence in the industry. The company connects all stakeholders on a unified platform, driving technological innovation and fostering a global community of groundbreakers.
Procore acquired Esticom on October 27, 2020. This acquisition occurred during a period of significant digital transformation within the construction industry, driven by the need for advanced technologies to streamline processes and improve efficiency. The timing also coincided with Procore's Groundbreak event, highlighting the strategic importance of the acquisition. This move aligns with industry trends towards enhancing preconstruction capabilities and integrating comprehensive project management solutions.
Market Expansion: The acquisition of Esticom allows Procore to extend its product capabilities into earlier stages of the construction lifecycle, thereby expanding its market reach to include more comprehensive preconstruction solutions. Esticom's focus on specialty contractors, general contractors, and concrete contractors broadens Procore's customer base, enhancing its market presence in the preconstruction and design management sector.
Technology Integration: Procore plans to fully integrate Esticom into its platform by 2021, enabling seamless data connectivity. This integration will allow users to export estimates to generate project budgets directly within Procore, enhancing data connectivity and providing a seamless user experience. Esticom’s cloud-based estimating and takeoff solution complements Procore's existing preconstruction offerings, reducing errors and saving time.
Competitive Advantage: By acquiring Esticom, Procore enhances its preconstruction offerings, providing a single, comprehensive solution that increases accuracy in cost estimates and productivity. This integration positions Procore as a more attractive option for general contractors and specialty contractors, giving it a competitive edge in the construction management software market. The seamless flow of data from preconstruction to construction phases reduces errors, improves project budget and cost controls, and strengthens Procore's competitive position.
The acquisition of Esticom by Procore has led to significant operational changes. Esticom is set to be fully integrated into Procore's platform by 2021, enhancing the seamless flow of data from preconstruction to construction phases. During this transition, Esticom will remain a partner on the Procore App Marketplace, ensuring continuity for existing users. While the press releases do not detail specific management changes, the collaborative statements from Procore's CEO and Esticom's cofounder suggest a smooth integration of Esticom's team into Procore's operations.
Product offerings have also evolved post-acquisition. Esticom's powerful estimating functionalities are now part of Procore's comprehensive preconstruction solutions, improving cost estimation accuracy and productivity. This integration allows contractors to quickly determine material quantities and calculate costs using a built-in catalogue, streamlining the traditionally cumbersome estimation process. Employee reactions have been positive, with key figures like Chris Lee, Esticom's cofounder, expressing enthusiasm about leveraging Procore's platform to enhance their services. Customers, too, have welcomed the acquisition, anticipating improved estimating accuracy and operational efficiency.
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