RealPage has agreed to acquire fellow real estate management solution Buildium in a deal worth around $580m in cash.
Buildium reportedly generated around $50m in revenue during the twelve months ending September 30 2019, and is expected a run-rate of $60m, representing a 30% growth year-over-year.
The PropTech platform is used by 17,000 customers across more than 50 countries. Clients can use the platform to improve their accounting capabilities as well as managing the leasing and documentation of properties.
Following the close of the deal, RealPage is looking to expand the platform with the introduction of “click-on†capabilities. These will improve leasing and living experiences, recovery of utility fees, payment processing, and expand insurance offerings.
RealPage CEO and chairman Steve Winn said, “The SMB market segment represents a tremendous growth opportunity for RealPage. This is an area where technology is underutilized, and currently served by myriad point products. Buildium in concert with RealPage enables us to reach deeper into that market, with a best-in-class platform backed by data science.â€
Headquartered in Texas, RealPage gives real estate owners and managers technology solutions which improve transparency in asset performance and better leverage data insights. Tools include document, expense property, revenue and spend management, among others, as well as insurance, leasing, payments, billing and deposit support.
RealPage is expecting to increase its investment into its Propertyware solution, which is aimed towards larger single-family managers with more complex property management and accounting needs. Both of its platforms will support third-party APIs.
Buildium CEO Chris Litster said, “This is a fantastic time for us to join forces with RealPage. Our shared vision around innovation, simplicity and a commitment to stressing service to our clients will enable them to thrive and grow as well as deliver unmatched value for their investors, owners and residents alike. I would like to thank our board and Sumeru Equity Partners for their direction and support through this process.â€
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