Richardson, Texas–based real estate software and data analytics company RealPage announced two major moves today that have big implications for the multifamily industry.
RealPage has agreed to acquire Axiometics, an apartment market data provider, and will combine it with MPF Research, a division of RealPage. Also, RealPage has entered into a long-term relationship with Real Capital Analytics (RCA), a firm that provides multifamily sales transaction data.
“Analytics are a growing part of the RealPage strategy and a growing part of our revenue stream, and we felt that bringing together this unique data set really positions us very well moving forward,” Greg Willett, RealPage chief economist, told Multifamily Executive shortly after the deals were announced.
“Combining data from Axiometrics, MPF Research, and RCA with the data analytics power of RealPage, which is based on tens of millions of real-time lease transactions, will create a unique market intelligence platform,” RealPage stated in a release. “The company expects this platform to be the most-referenced apartment data analytics solution in the U.S.”
Willett says data are playing a bigger role in the real estate industry these days. “Certainly, greater visibility into what’s happening in the marketplace helps in the decision-making process in virtually every aspect of the multifamily industry, and everyone does seem to be placing more emphasis on this,” he says.
The moves, RealPage states, will contribute to its 2020 goal of $1 billion in revenue and $300 million in adjusted EBITDA, once fully integrated by early 2018.
The deal is expected to close in February. The acquisition purchase price of approximately $75 million in cash is subject to working-capital adjustments and post-acquisition indemnification claims. For the year ending Dec. 31, 2016, revenue for Axiometrics is forecasted to be approximately $13.8 million, reflecting annual growth of 27% compared with 2015. In the release, RealPage says it expects the purchase of Axiometrics to represent a valuation of approximately eight times EBITDA once fully integrated.
“The acquisition of Axiometrics furthers our goal to become the definitive source for accurate data intelligence regarding the acquisition, operation, and disposition of every market-rate apartment in the U.S.,” said Steve Winn, chairman and CEO of RealPage, in a release.
“This is a big win for our clients and the multifamily rental housing industry,” said Ron Johnsey, CEO of Axiometrics. “By combining with RealPage, we will vastly expand our data coverage and forecasting capabilities and thereby increase the value we offer to all constituents in the apartment housing industry.”
Axiometrics founder Johnsey transitioned to the role of chairman of the board and CEO in December while COO Keith Walters assumed the title of president.
“Our strong results, including a record 46% year-over-year booking increase, have been driven by the success of Keith Walters and the team he has put in place,” Johnsey said in a release announcing the title changes earlier this month. “Accordingly, it is the optimal time for me to transition to the role of chairman of the board and CEO and for Keith to take on new responsibility as president and COO of our growing organization.”
No further organizational changes are currently planned, according to RealPage.
Willett says both product lines, Axiometrics and MPF, will be sustained while RealPage works to bring both into one platform. There will be “no interruption to either client base,” he says.
“Both the analytics platforms for RealPage and for Axiometrics are fast growing,” Willett adds. “This general category will make a bigger contribution to RealPage’s financial success moving forward.”
