Multiple sources have confirmed to Multifamily Executive that Carrollton, Texas-based multifamily software and technolgy services provider RealPage has agreed in principle on the acquisition of Cincinnatti-based property management software firm Domin-8. If consumated, the deal would become the latest in a string of multifamily technology sector buys by RealPage that sources say are part of a larger balance sheet, strategic, and operational corporate positioning as the company prepares for an initial public offering.
RealPage executives had no comment on either the Domin-8 acquisition or on whether an IPO is currently in the works. In December, RealPage CEO Steve Winn told the Dallas Business Journal that the company—currently raking in $100 million in annual revenues with annual growth in the 20 percent to 30 percent range—would likely pursue a public option at some point. “We’ve made no decision to go public,” Wynn said. “But I believe the company is well positioned to be public. It’s probably inevitable that we will end up doing that. But there are no imminent plans for an IPO.”
Domin-8 filed for Chapter 11 protection in U.S. Bankruptcy Court last September, at that time listing $34.7 million in mostly debt liability versus $1.4 million in assets. According to a statement on the Domin-8 Web site, the business has been financed with a significant amount of debt. “The ongoing cost of this debt represented a heavy burden on the company's operations, one that could no longer be sustained,” the statement says, noting that the company still posted overall revenue growth of 20 percent in 2008 and growth of approximately 10 percent in 2009. Bankruptcay proceedings were expected to last between 60 and 90 days.
Domin-8 CEO Greg McGrath did not return calls to Multifamily Executive requesting comment on the pending RealPage acquisition.