RealPage has agreed to acquire real estate software-as-a-service (SaaS) provider Buildium from its current owner, Sumeru Equity Partners, in a deal valued at $580 million in cash, minus closing costs and other fees.
Buildium’s property management solutions serve more than 17,000 customers in 50 countries, with approximately 2 million residential units under management. The company generated approximately $50 million in revenue in the twelve months ending Sept. 30 and is expected to produce a run-rate of $60 million by the end of the year, or 30% year-over-year growth.
“This is a fantastic time for us to join forces with RealPage,” says Chris Lister, CEO of Buildium. 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.”
RealPage intends to combine its capabilities with Buildium to serve the small and medium-sized business (SMB) market segment, which covers small multifamily, single-family, HOA and condo associations, and commercial real estate. Plans to expand Buildium’s platform include “click-on” capabilities that improve renter leasing and living, recovery of utility fees, enhanced payment processing, and expanded insurance offerings.
“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,” says Steve Winn, CEO and chairman of RealPage.
The acquisition’s completion is still subject to closing conditions, including regulatory approval, which RealPage believes will be satisfied by the end of the year.