Software and data analytics provider RealPage has lined up another acquisition. This time, the firm has an agreement to acquire ClickPay, a comprehensive electronic payment platform servicing 2.3 million units across the multifamily, homeowners association (HOA), condominium, and co-op segments of real estate, for $218 million.
The move expands RealPage’s footprint into the HOA owner–occupied segment of real estate, which the company estimates contains more than 16 million units and will provide a total opportunity of $60 per unit per year. The deal also adds nearly $1 billion to the company’s total addressable market.
The acquisition broadens RealPage’s presence in the New York metro market and “solidifies the integration of its front-end leasing platform into third-party management systems,” the company says.
Here’s how RealPage breaks down the acquisition:
Including the HOA market, the holistic RealPage platform is expected to serve multiple segments of real estate, from rentals to owner-occupied units, totaling over 62 million units. Total current and future applicable solutions for those units represent nearly $205 per unit per year, for a total addressable market of over $12.7 billion.
[The deal] strengthens the company’s consumer-centric, front-end leasing platform. ClickPay, in concert with the recent acquisition of On-Site, combines functionality to attract, convert, and retain renters integrated with popular third-party property management systems. The front-end platform includes property websites, contact center, online leasing, CRM, screening, resident portal, and payments.
[The deal] creates one of the largest payment processing platforms for real estate assets, with over $55 billion of annual run-rate transaction volume.
Citing data from the U.S. Census Bureau American Housing Survey, RealPage chairman and CEO Steve Winn says that only a fraction of the more than $525 billion in rent collected annually is acquired electronically. He adds that owner-occupied units in the HOA segment are spending approximately $60 billion per year in fees, according to his industry sources.
“We believe our scale gives RealPage a strategic position to drive deeper client adoption across most real estate categories for payment solutions as well as other solutions that reduce costs and improve efficiency,” Winn said in a statement. “In addition, I believe ClickPay and our recent acquisition of On-Site together unlock a significant opportunity to attract, convert, and retain renters for clients utilizing property management systems outside of the RealPage ecosystem.”
Last summer, RealPage acquired On-Site, a leasing platform for property managers and renters that assimilates leads from any source and converts them into signed leases for both the multifamily and single-family housing industries. It was one of five acquisitions for RealPage in 2017. The company announced its purchase of Axiometrics in January 2017, Lease Rent Options in February, American Utility Management in June, and PEX Software in October.
Matt Davis, senior vice president of RealPage financial services, says the company will incorporate ClickPay’s capabilities into the RealPage payment processing platform, enabling clients to eliminate site-level check handling.
“We anticipate ClickPay will remain a stand-alone platform supporting most third-party property management solutions, but will also begin integrating RealPage’s front-office capabilities tailored for rental real estate,” Davis said in a statement.
“Accordingly, ClickPay operations in New Jersey and New York will be expanded to further support rental clients and to further penetrate the HOA segment. We expect that the combined transaction volume generated through the RealPage and ClickPay platforms will provide the scale necessary to drive a more efficient and cost-effective solution for our clients,” he added.
Ernest Muller and Tom Kiernan, chairman and CEO, respectively, of New York City–based ClickPay, will remain with the business in addition to approximately 100 employees.