IFM acquires Australia SaaS player Render Networks

IFM has committed equity of approximately AUD 40m (USD 27.5m) from its growth capital fund. Render’s founders and management retained minority stakes.

The fund achieved a second close of AUD 380m at the end of last year and the hard cap has been set at AUD 500m. It targets profitable companies with high-growth potential across technology, business services, and healthcare. Selection criteria also include an ability to drive a material reduction in carbon dioxide emissions.

Render was founded in 2013 by Dan Flemming, who previously led construction of Australia’s national broadband network, and Joe Forbes, also founder of resource optimisation and business analytics start-up Biarri. It gained initial traction in Australia by partnering with the project manager for the national broadband network.

The company now has significant operations in North America, the UK, and Australia. It serves builders and operators of telecommunications networks, using a proprietary geospatial construction platform to help build networks more efficiently.

Render’s platform leverages advanced algorithms and machine learning capabilities to optimally design, plan, and track construction delivery across the project lifecycle. It claims a track record of getting networks built up to 30% faster and with up to 50% less material waste and rework compared to traditional construction practices. The company estimates this can drive cost savings of 15%.

Moreover, efficiency benefits enabled by Render lead to reductions in transport-related emissions.

Clients include fibre network utility operators such as Strata Networks, SpringNet, and First Electric Co-operative in the US, and Wessex Internet in the UK. Render also works with construction contractors and turnkey project managers, like US-based Irby Utilities and The Broadband Group.

The company is already profitable and IFM sees further growth opportunities by driving expansion into new regions and markets, according to a statement.

“Render Networks is well-positioned to capitalise on the connectivity boom that is increasing at pace, as well as the global transition to a net-zero economy, which requires every sector – including construction – to examine all aspects of their operations and adopt technologies that help reduce their operational footprint,” said Adrian Kerley, an executive director for private equity at IFM.

Kerley led the investment with Bora Han, an investment director. It is the second deal from IFM’s growth fund. The first was Payapps, a Melbourne-based, global SaaS provider in the construction and building management sector.

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• Topics
• Australasia
• Buyouts
• Technology
• Australia