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RealPage signs USD 580mn deal for Buildium
Posted on Thursday, 07 November 2019 13:08
Real estate technology platform RealPage has reached an agreement to pick up property management service provider Buildium for USD 580.00 million.
The acquiror is looking to combine its best-in-class capabilities with the target to help smaller multifamily, single-family, associated and commercial real estate segments.
Buildium is used by more than 17,000 customers in over 50 countries, with around two million residential units under management.
RealPage has plans to expand this platform to improve the renter leasing and living experience, the recovery of utility fees, exchange the payment processing capabilities and increase insurance offerings.
Founded in 2004, Buildium generated revenue of USD 50.00 million during the year to 30th September 2019, with an expected run-rate of around USD 60.00 million by year end, representing over 30.0 per cent year-on-year growth.
The group is majority owned by Sumeru Equity Partners following an investment in May 2016.
RealPage provides a technology platform that enables real estate owners and managers to change how people experience and use rental space.
Clients use the application to gain transparency in asset performance, leverage data insights and monetize space to create incremental yields.
It serves around 16.80 million units worldwide from offices in North America, Europe and Asia.
During the nine months to 30th September 2019, RealPage generated revenue of USD 733.37 million, up 14.1 per cent from USD 642.51 million in the corresponding period of 2018.
Net income rose 33.7 per cent to USD 38.04 million in Q1-3 2019 (Q1-3 2018: USD 28.45 million).
The news comes over one year after RealPage paid USD 218.50 million for US-based online real estate billing software provider ClickPay in October 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,005 deals targeting US-based software publishers announced worldwide in 2019 to date.
Three of these transactions were worth more than USD 10.00 billion, the largest was valued at USD 15.70 billion as Salesforce.com agreed to acquire Tableau Software.
Hellman & Friedman, Blackstone, JMI Management and Canada Pension Plan Investment, via Unite Parent, is buying Ultimate Software Group for USD 11.00 billion in the second-biggest deal, which was followed by Broadcom buying Symantec’s enterprise business for USD 10.70 billion.
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