Following on the heels of its recent Axiometrics acquisition, data analytics provider RealPage has announced its agreement to acquire the Lease Rent Options (LRO) revenue management service, along with related assets, for $300 million in cash from The Rainmaker Group. Taken together, RealPage’s acquisition plans will allow it to expand its offerings in rental housing data and asset management.
Currently, RealPage estimates that less than 10% of the owners and operators of the nation’s 45 million rental housing properties currently use data-driven pricing, and international estimates are even lower. With improved real-time lease transaction data, optimized new and renewal price data, and expanded data science talent and tools incoming, RealPage seeks to take advantage of a market opportunity to expand its collective data and pricing services.
“With many apartment markets softening around the U.S., now is the right time to bring together the best data-science talent, a comprehensive lease-transaction database, and RealPage’s powerful suite of pricing, demand and credit optimization tools into one comprehensive platform,” said Steve Winn, Chairman and CEO of RealPage, in a statement.
“As revenue management becomes more broadly accepted, we expect our combined platform to drive accelerated, sustained revenue growth in our asset optimization product family over the long-term. We believe we have all of the components necessary to offer solutions that bring efficiency and precision to the apartment real estate sector which has historically lacked the solutions available in other investment classes.”
LRO currently provides revenue management services for over 1.5 million apartments. The LRO acquisition is expected to close in the second quarter of this year, and service integration work is expected to complete in 2018. “We are never out of the market for the right acquisitions," added Rhett Butler, VP, Investor Relations. "At the same time we take acquisition integration very seriously, and are highly-focused on Axiometrics and LRO acquisition integrations in the near-term."