Riverside buys AI-powered ProspectNow, plus Mainstream Electric, Heating, Cooling and Plumbing, in separate add-on deals

The Riverside Co. has closed two more deals.

The Company announced the acquisition of Spokane, Wash.-based Mainstream Electric, Heating, Cooling and Plumbing, a provider of residential HVAC, electrical and plumbing services, for the Company’s portfolio company Radiant Plumbing and Air Conditioning.

Financial terms of the deal were not disclosed.

Riverside acquired Austin, Texas-based Radiant in May 2021. This transaction marks the company’s third add-on transaction since then.

“Throughout our partnership, we plan to make strategic investments across the various lines of service, encourage cross-selling and grow the newly launched wastewater and drainage business,” said Meranee Phing, senior partner at Riverside, in a statement.

The firm remains in the market for other Radiant tuck-in deals.

Separately, Riverside announced the acquisition of San Jose, Calif.-based ProspectNow — described as a provider of “AI-powered real estate and owner intelligence” — as an add-on for its Chicago-based platform company Buildout Inc.

Financial terms of the deal were not disclosed.

Buildout is a Software as a Service (SaaS) based marketing and customer relationship management platform used by commercial real estate agents, making ProspectNow a complementary tuck-in with its property and owner database of 155 million properties and 18 million businesses makes to Riverside.

“Not only do their markets and solutions complement each other, the teams at ProspectNow and Buildout share a vision and passion for delivering a best-in-class platform to accelerate real estate agents throughout the lifecycle,” said Loren Schlachet, Managing Partner of Riverside, in a Explanation.

Buildout, purchased by Riverside in the summer of 2020, was the private equity firm’s first U.S. platform investment following a hiatus from contracts in early 2020 as the COVID-19 pandemic began to unfold.

You can read more about the company’s strategy behind this deal in this story from Crain from the time.

“ProspectNow fits perfectly with the Buildout platform,” added Riverside partner John McKernan in a statement. “The company’s data improves brokers’ ability to drive business and aligns with Buildout’s mission of enabling brokers to be more productive and successful.”

The ProspectNow deal is the second tuck-in deal for Riverside-owned Buildout. The other deal was in February 2021 with Rethink, a SaaS-based CRM software for the CRE market.

Headquartered in Cleveland, Riverside is a global private equity firm investing up to $400 million in growing businesses.

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