Sydney-based aggregator Software Combined has boosted its growing portfolio of business assets following the acquisition of specialist home-energy rating company Hero Software.

The deal for Hero Software is the ninth by Software Combined since it was established in 2020, with the acquisition seen as a strategic play in the expanding sustainable construction sector.

Founded by Nick Bishop in 2017 and based in Brisbane, Hero Software provides a next-generation energy modelling software platform that enables the energy-efficient optimisation of building designs.

The platform is said to allow building assessors and raters to meet and exceed the NatHERS (Nationwide House Energy Rating Scheme) compliance standards for new residential buildings in Australia.

Bishop will continue to lead Hero Software following the acquisition with the company expected to leverage the support and resources provided by Software Combined to further drive business expansion.

“We are proud to have already played a role in driving software-based innovation to make it easier for Australian houses to be built in a more sustainable, comfortable, and ultimately, more valuable way,” says Bishop.

“I am looking forward to continuing to work with our customers and to drive the next stage of our growth under the Software Combined umbrella, particularly with more changes expected in the regulatory and compliance environment for housing.”

Software Combined, which is backed by private equity group Navis Capital Partners, was founded by Evert den Hollander, Niek Hoogenhout and Stefan Jansen five years ago, but since then Navis has taken a controlling stake in the business.

Prior to establishing Software Combined, Hollander led a global mergers and acquisitions team at Macquarie Group (ASX: MQG) acquiring and managing asset finance businesses, while Jansen built the Channels and Alliances business at AWS Australia and New Zealand.

Hoogenhout has an extensive leadership career with stints as managing director of The Boston Consulting Group in Sydney, as well as CEO of financial services software group Rubik Financial and as a partner at Accenture (Australia) aligning software with business strategy.

The acquisition of Hero Software follows a deal for Auckland-based database disaster recovery software specialist Dbvisit in mid-2024, building on another New Zealand acquisition, self-service automation and business process specialist Activate, earlier in the year.

In 2023, the aggregator scooped up Perth-based Last Yard, adding a global leader in marketing execution platforms for the retail industry to its portfolio.

Software Combined describes its mission as “supporting a portfolio of exceptional software businesses to maximise their full growth potential and to secure continuity of what founders have built”.

Jansen, the Software Combined co-founder and chief revenue officer, says the rationale behind the Hero Software deal is backed by the sustained demand for residential housing in Australia.

“There is no doubt that with expectations of a surge in dwelling construction in Australia over the next decade, and the growing importance of compliance to sustainable energy standards, Hero Software is well positioned for further growth,” says Jansen.

“We are excited that Hero Software is joining Software Combined, not only because it will mean the company can benefit from our resources, and experience, but that it will mean Nick can continue to lead the company and focus on accelerating innovation for a more sustainable building industry.”

Financial details of the Hero Software acquisition have not been disclosed.

Help us deliver quality journalism to you.As a free and independent news site providing daily updates during a period of unprecedented challenges for businesses everywherewe call on your support