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RealPage Closes USD 300m Acquisition of Apartment Revenue Management Solutions Firm Lease Rent Options.


7 December 2017 - Texas, US-based software and analytics provider RealPage, Inc. (NASDAQ: RP) has closed the acquisition of the Lease Rent Options revenue management business from The Rainmaker Group, the company said.

In February, RealPage agreed to acquire apartment revenue management solutions company Lease Rent Options (LRO) and related assets from The Rainmaker Group for USD 300m in cash.

RealPage expects to achieve incremental revenue and expense synergies accretive to its long-term revenue growth objectives and adjusted EBITDA margin expansion.

LRO empowers optimised pricing for over 1.5 m apartments. RealPage said the acquisition expands its suite of solutions for precision data analytics and asset optimisation for the rental housing industry.

The Rainmaker Group has agreed to work with RealPage during a transition period immediately after the acquisition is closed.

RealPage provides services to clients in real estate industry.

For the fourth quarter ended December 31, 2017, the company expects LRO will contribute Non-GAAP revenue and adjusted EBITDA of approximately USD 2.6m and USD 0.7m, respectively.

Integration is expected to be completed in 2018, and RealPage expects the purchase price valuation to represent approximately 12 times adjusted EBITDA on a run-rate basis once integration efforts are complete.

RealPage is a global provider of software and data analytics to the real estate industry. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves nearly 12,500 clients worldwide from offices in North America, Europe and Asia.

Country: USA

Sector: Construction/Real Estate

Target: Lease Rent Options

Buyer: RealPage, Inc

Vendor: The Rainmaker Group

Deal size in USD: 300m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Geographic Code:1U7TX
Date:Dec 7, 2017
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