--- title: "Capstreet Acquires hh2 Cloud Services, a Leading Provider of Construction Industry Software" description: "HOUSTON, TX, February 2, 2022, The Capstreet Group (“Capstreet”), a Houston-based lower middle market private equity firm, announced today that it has..." url: https://capstreet.multisites.ai/news/capstreet-acquires-hh2-cloud-services-a-leading-provider-of-construction-industry-software publisher: Capstreet phone: +1-713-332-2700 contact: https://capstreet.multisites.ai/contact --- # Capstreet Acquires hh2 Cloud Services, a Leading Provider of Construction Industry Software OtherPublished February 2, 20223 min read ![Capstreet team members at Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_Z23gxjt.webp) HOUSTON, TX, February 2, 2022 – The Capstreet Group (“Capstreet”), a Houston-based lower middle market private equity firm, announced today that it has acquired hh2 Cloud Services (“hh2” or “the Company”), a leading provider of software for the construction industry. Financial terms of the transaction were not disclosed. Founded in 2004 and based in Kaysville, UT, hh2 is a provider of modular software solutions that help construction companies effectively manage their field employees and operations, with streamlined integration into their primary ERP system software. hh2’s solutions allow contractors to perform essential business functions such as payroll, invoice routing and approval, applications for payment, compliance, daily logging, dispatch, and various HR tasks with greater ease, efficiency and productivity. The Company’s software integrates with leading construction ERP platforms and multiple Project Management Software platforms. CEO Devon Dorrity and the senior management team will remain with the Company. “We’re impressed with hh2’s powerful technology and integration capabilities, supported by a talented team, which makes it a strong platform from which to build our future construction software investments,” said Paul De Lisi, Partner at Capstreet. “Demand for software solutions in this industry has been growing significantly as companies look for ways to improve their operational efficiency. We look forward to working with Devon and the entire hh2 team as we seek to grow the business both organically and through strategic acquisitions.” “We’re excited to partner with the Capstreet team, leveraging their experience and resources to help us take advantage of new market opportunities and further our growth,” said Mr. Dorrity. “Capstreet’s support will be a game-changer for hh2 as we look to add complementary solutions and expand our reach, while continuing to deliver valuable technology and services to our partners and customers.” ## About hh2 Cloud Services After nearly two decades, hh2 Cloud Services® continues to advance cloud-based construction management solutions for the commercial construction space. hh2 offers solutions for time-entry, punch clock, AP routing & approval, credit card transaction coding, reimbursement coding, document routing & approval, applications for payment, human resources, daily logs, service management, dispatch, data aggregation, and pay stubs. hh2 also provides robust, scalable, construction integration-platform-as-a-service (iPaaS) with the Universal Construction Model® (UCM®). Please visit [www.hh2.com](http://www.hh2.com/) for more information. ## About The Capstreet Group Founded in 1990, Capstreet invests in lower middle market software, tech-enabled services, and industrial business services companies. With over 45 platform investments and over 200 add-on acquisitions since inception, Capstreet’s investment strategy is focused on utilizing its Capvalue FrameworkTM to accelerate growth and profitability, and create long term sustainable businesses. The majority of Capstreet’s investments have been with founder- or entrepreneur-owned businesses. For more information, visit the Capstreet website, [www.capstreet.com](https://capstreet.multisites.ai/). ## Terms on this page - [Lower Middle Market](https://capstreet.multisites.ai/glossary/lower-middle-market) - [Private Equity](https://capstreet.multisites.ai/glossary/private-equity) ## Keep reading - [Automotive technology private equity for dealer-focused companiesCapstreet invests in automotive technology businesses that help dealerships. The firm targets solutions for sales, marketing, finance and insurance, and service lane operations. It describes several recent investments in the sector and looks for owners with $3 to $15 million of EBITDA who want a majority capital partner.](https://capstreet.multisites.ai/industries/automotive) - [Business Succession and Exit Options: How to Choose the Right Next Step for Your CompanyOwners have five main exit paths: transfer to family, sell to management, sell to employees through an ESOP, sell to a strategic buyer, or partner with private equity. Each trades price, speed, control and legacy differently. Start planning at least three to five years before you want to step back.](https://capstreet.multisites.ai/business-succession-and-exit-options) - [Buy and Build Strategy: How a Platform Company Grows Through Add-On AcquisitionsA buy and build strategy starts with one well-run platform company and adds smaller businesses to it over time. The goal is a larger, more capable company than any single piece could be. It fits fragmented industries best. Owners of smaller firms can sell to a platform and often stay on.](https://capstreet.multisites.ai/buy-and-build-strategy) - [Construction technology private equity for software ownersCapstreet believes technology can drive large changes in construction efficiency and project delivery. It targets software businesses that support project and financial management for general contractors and sub-contractors. The firm sees the industry as early on its technology adoption curve and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/construction) - [Capstreet deal criteria: the companies we look forCapstreet looks for entrepreneur-owned business services companies with $3 to $15 million of EBITDA. We make primarily majority investments, and entrepreneurs reinvest alongside Capstreet. We want a tenured team, solid financials, a defensive business model, untapped growth potential and a niche advantage. We invest across 12 industries.](https://capstreet.multisites.ai/deal-criteria) - [The due diligence checklist for owners selling to private equityDue diligence is the buyer's check of your business after you sign a letter of intent. Private equity firms review five areas: financial (quality of earnings), operations, tax, HR and benefits, and legal. Owners who gather clean records before the process starts shorten it and face fewer surprises.](https://capstreet.multisites.ai/guides/due-diligence-checklist-for-owners) ## Ready to get started? Let’s talk. Tell us about your company and what you want next. Conversations are private, and there is no obligation. [Start a conversation](https://capstreet.multisites.ai/contact) [(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com) ![Capstreet team members at a Houston elementary school for Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_tggWP.webp)