Yard Club, a startup founded to make more efficient use of construction and other heavy equipment, has been acquired by Caterpillar. Terms were not disclosed, butYard Club CEO Colin Evran confirmed the deal had closed earlier this week.
The deal came about almost exactly two years after Caterpillar announceda strategic investmentin Yard Club. As part of that investment, Yard Club began working with the dealers in the Caterpillar network and helping them to rent as well as sell equipment to contractors and construction crews.
Since then, Yard Club has continued to grow its rental business, while also adding features for users. According to the companys website, Yard Club processed $120 million in transactions across 2,500 contractors and rental companies in 2016.
As time has gone on, the company also moved from a transactional business based on taking a cut of rentals made on its platform to one that provides a SaaS platform to help customersmanageall the pieces of equipment they own or rent. That includes tools for dispatch, scheduling and fleet visibility, as well as inspection and maintenance management.
Competitors in the space include startups like EquipmentShareandGetable. But compared to those companies, Yard Club has receiveda relatively modest amount of venture investment. Altogether, the company had raised $5.1million from investors that include Caterpillar, Andreessen Horowitz, Harrison Metal, Dorm Room Fund, Fred Poses and Andy Rachleff.
Now that its part of Caterpillar, the hopeis that Yard Club will be able to bring more tech to an industry that has sorely been lacking in tech.
Our visions are aligned. We were already working within the Caterpillar distribution network and they were an investor in our company, Evran toldme. As part of the deal, Yard Clubs 13 employees havejoined Caterpillarand will act as the equipment makersdigital presence in San Francisco.