M&A: Lessen Acquires Facilities Management Solutions Provider Blue Skye IBE; Gains ESG Expertise

Lessen -- which specializes in real estate property management technology and services -- has acquired Blue Skyre IBE, a global facilities management solutions provider. This acquisition allows Lessen to “extend its offerings in facilities management and Environmental, Social and Governance (ESG) solutions,” the companies said. Financial terms of the deal were not disclosed.

Related: See all M&A deals involving sustainability consultancies listed here.

Property Management M&A: Technology and ESG Capabilities Converge

Lessen, based in Scottsdale, Arizona, leverages a proprietary software platform to provide outsourced real-estate property services such as renovations, turns, and maintenance primarily for the single-family and multifamily rental industries. The company had 322 employees listed on LinkedIn as of April 2023.

Blue Skyre IBE, based in Chicago, Illinois, is a commercial real estate advisory and service company that offers ESG capabilities. Among the Blue Skyre IBE executive moves to note:

• CEO Maureen Ehrenberg shifts to president of Lessen’s commercial division
• Chief Strategy & Product Officer Colette Temmink shifts to chief operating officer of that Lessen division.

Lessen has M&A experience. The company previously acquired SMS Assist for $950 million in January 2023. At the time, the two companies had a combined national footprint of approximately 250,000 residential and commercial properties, and they facilitate approximately 2.5 million repair and maintenance orders per year.

Lessen is a venture-backed. The company raised $170 million in Series B funding in November 2021, and $35 million in Series A funding in June 2021.

Lessen Acquires Blue Skyre IBE: Executive Perspectives

In a prepared statement about the deal, Lessen CEO Jay McKee said: "This acquisition advances our goal of providing a game-changing, tech-enabled service model for the entire real estate ecosystem. Lessen and Blue Skyre share a vision of leveraging technology to help shape the future of real estate for a better world, solving pain points, and replacing complexity with transparency and operational efficiency backed by data-driven insights. With this most recent acquisition, Lessen is uniquely positioned to transform commercial and residential real estate to the benefit of all the stakeholders.”

Added Ehrenberg: “Leading Lessen’s commercial business division is an incredible opportunity to drive breakthrough innovation in facilities management. The market is calling for a new business model for facilities management solutions; clients seek comprehensive data integration, real-time performance management, portfolio resiliency, service excellence and operationalizing ESG—all of which Lessen delivers through its advanced, integrated digital operating platform.”

Concluded Temmink: “Facilities management has been going through a transformation and Lessen has been at the forefront of this change. Delivering value, quality, predictive and efficient services to clients while providing real-time business insights is critical. Lessen’s dynamic approach to strategic integrated facilities management is exactly what the industry requires today.”