Exclusive: Broadlume acquisitions fueled by $60M from PSG
Broadlume, a Sarasota, Florida-based software provider for flooring retailers, took in a previously undisclosed $60 million from PSG that has financed several deals already, CEO Todd Saunders tells Axios exclusively.
Why it matters: The flooring industry is ripe for digital innovation due to its slowness to adopt new technology and parts of its business that are still manually run.
How it works: Broadlume provides tools that help customers operate more efficiently while attracting new sales, PSG managing director Marco Ferrari tells Axios.
- Even in down economic times, “helping your customers evolve and compete better in a changing market environment” is key, Ferrari says.
- Broadlume has been able to help retailers increase their profit margins by the double digits, Saunders says.
State of play: Broadlume has used most of the proceeds since the July 2021 deal on technology acquisitions.
- In March, Broadlume acquired enterprise resource planning software platform BanaBoom.
- This follows its acquisition last fall of ERP platform RollMaster, which provides back-office functions like inventory management, scheduling and accounting.
- Last August, it acquired Retail Lead Management, a CRM that helps companies manage their leads and understand ROI from advertising.
Meanwhile, Broadlume recently launched an in-store experience that connects retailers websites with their ERP and CRM, as well as matches their catalog information the same way in their showrooms as online.
- Around 100 stores are already using this in-store platform, Saunders says.
- The company also introduced a payment processing tool this month.
Details: PSG, a growth equity firm that partners with middle-market software and tech-enabled service companies, made a minority growth investment, Saunders says.
- Per PitchBook data, the company had raised $17 million prior to PSG taking its minority stake.
What they’re saying: These acquisitions give Broadlume access to companies with best-in-class products and deep connections with their customers, Saunders says.
- “This is a relationship business," he says.
What’s next: The company aims to expand into fintech, providing retailers fully integrated payment processing and payroll tools, as well as the ability to offer consumers financing options, Saunders says.
- The company also wants to connect retailers’ showrooms to the digital age.
- “The experience may start online, but at the end of the day, that customer is going to make their way into my store,” Saunders says of his retailers.