CHICAGO—JLL has just entered into an agreement to acquire Corrigo Inc., a Silicon Valley pioneer in cloud-based facility management, a move which will bolster the Chicago-based company's existing RED data and analytics platform. Facility management has grown increasingly complex and demanding, and real estate managers use RED to provide C-suite executives with granular-level data about maintenance, equipment use, building performance, the macroeconomic environment, and many other issues in an easily-digestible manner.
Company officials expect the transaction to close later this month, subject to customary closing conditions.
"Corrigo's platform fits hand-in-glove with RED," Doug Sharp, president of JLL Corporate Solutions, tells GlobeSt.com. "The data we have going forward is going to increase significantly and it will allow us to provide a level of granularity that we've never had before."
And although JLL currently provides data and analytics services to enterprises of all sizes, "there are a lot of mid-market companies that don't have good end-to-end solutions," he says, and this acquisition will also help it build a bigger base within this group, where Corrigo has a lot of customers.
In the late 1990s, Corrigo was a Silicon Valley start-up with seven people working out of a garage. Today it employs 70 and its platform is used by 1 million people to manage 10 million work orders each year across more than 180,000 sites. The firm also recently launched GetCru, an online marketplace that connects vendors with individuals looking for services in the commercial market.
Clients using high-tech analytic platforms like this can automate everything from initiating and tracking work orders, managing bids and monitoring completed work to paying invoices. But Rick Michaux, Corrigo chairman and founder, says his company brings users a unique level of detail.
For example, although other platforms can record when an air conditioner gets repaired, what was done and by which vendor, Corrigo can also provide GPS data showing how long the repairman stood in front of that air conditioner. And by combining that data point with many other similar bits of data from a broad range of properties, Corrigo can tell a client whether the vendor was performing efficiently.
The company has also assembled vast amounts of data points on every aspect of facility management from enterprises such as Safeway, Blue Cross Blue Shield, Wendy's and many others, to establish benchmarks for many procedures so others can properly evaluate pricing. "They will know exactly what they should be spending on plumbing, not just what they did spend," says Michaux.
"The more you can benchmark, the more you can predict," Sharp says, and JLL wants to "get into the business of predicting," so clients can better manage their money and work flow.
JLL "scoured the industry, not just nationally, but globally," he adds, to find the partner best-suited to make that happen. "We truly couldn't find anything that matched Corrigo."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
