Raleigh software company Prometheus Group has announced its first two acquisitions, making good on an expansion strategy embraced since receiving a financial infusion from a private equity company last year for that purpose.
Prometheus said Monday it has purchased Pipeline Group, a California technology business and Sage Technology, a tech company in Australia, bringing Prometheus’s employee total from about 165 to to 220, up from 120 employees at the beginning of 2016. Prometheus plans to hire four new employees next week and expects to employ about 270 by year’s end, said CEO and company founder Eric Huang, who grew up in Burlington and graduated from N.C. State University.
“I think this is just the beginning of our journey,” Huang said.
Privately-held Prometheus makes planning and scheduling software for such industries as utilities, construction, oil and gas, mining and chemicals. Its roster of 300 customers includes International Paper, DuPont, Dow Corning, Exxon and BP, Huang said.
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Prometheus does business worldwide, with offices in Australia, Netherlands, Argentina, Brazil and in the United Kingdom. But Huang said the company has penetrated less than 10 percent of its market, enterprise asset management, a field that has dozens of competitors.
Sage Technology, with about 20 employees, makes electronic permitting software, which is not used for state and federal permits, but as a safety checklist for industrial work orders and procedures. Pipeline, with 35 employees, makes a software that can connect Prometheus’ planning and scheduling software to other software platforms that would otherwise be incompatible, making the Prometheus product more universal across the technology spectrum.
The acquisition terms were not disclosed.
Huang started Prometheus as a one-man consulting shop in San Antonio, Texas, later adding his wife Amy and his brother Tim. They moved the company to Raleigh in 2006 to gain access to a rich talent pool of engineers. The company has raised money three times – first in 2009 from a local family office in Raleigh, then from TA Associates in 2013 and most recently through Francisco Partners, which took a 65 percent ownership stake in Prometheus in November. The amounts raised were not disclosed.
“They said, ‘We think with your characteristics your platform that we could actually buy a lot of other companies and add them to your base,” Huang said. “We are targeting one acquisition a year for the next several years.”