RealPage Purchased in a Leveraged Buyout: Here’s the Scoop


RealPage is a top provider of asset management services. The package provides services for residential real estate management and commercial and mixed-usage services. The mix of information and real estate services attracted the interest of Thoma Bravo, a private equity company that purchased RealPage for USD9.6b. RealPage shareholders are going to get USD88.75 in cash for each share, which is almost 31 percent higher than the cost prior to the deal being published. The price is bigger than RealPage’s pre-sale market cap, which indicates that the buyer didn’t have a problem with paying the whole worth of the bought company. RealPage isn’t in any sort of trouble.

A compliance review would also have to be carried out on the deal. The Board of Directors of the bought company has a forty-five-day timeframe for a larger bid, but they already accepted the offer. Shareholders will be voting on it at the beginning of next year, and the agreement is scheduled to close in Q2 of next year. RealPage will be a private firm after the sale, and won’t trade on NASDAQ.

The purchaser is a private equity group. It’s got more than USD 73 billion in assets under management and focuses on apps and tech. It has a good background on acquisitions, since they acquired more than 270 software and technology firms.

How to succeed

The bought entity has quite a background. The business was established in 1998 and became public ten years ago. The performance it had was modest; it began at fifteen dollars for each share and traded at USD67.83 prior to the acquisition. It now has about 12,000 users, and the most recent income amounted to USD298.1M, which is a jump of 17 percent from 2019.

Alike lots of other property firms, they saw a spike in development since the coronavirus spread began, partially due to lots of landlords and asset managers wanting to be in the position to manage properties in a hands-off way – not visiting the real estate assets in person.

What is most likely to appeal to the purchaser is RealPage’s history of data processing performance. It provides services to renters who wish to pay rent or ask for repairs, but the most important aspect of RealPage might be its option to provide real-time information on lease transfers. Such data gives a window on what the marketplace is doing and where chances lie in the upcoming times.

Their industry platform is fantastic and important to the property system and has enormous promise. The firm is located in Richardson, Texas, where it leased a 400k sq. ft. office. The Chairman and chief executive officer Steve Winn is expected to continue to manage the business even when the acquisition goes through.

What happens now to the property sector?

In Q4 of this year, we saw a spike in mergers and similar purchases to the one of RealPage. What this deal reveals is how much value real estate firms that handle property sector data carry β€” great information for the average investor. One of the values of RealPage is that it’ll allow Thoma Bravo to find other possibly profitable companies.

In Thoma Bravo, they are eager to apply their operational and investment knowledge in software to assist in driving up the bought company’s continued expanding and locate possibly lucrative mergers and acquisitions.

In recent weeks, there was a number of mergers and acquisitions: HousingWire bought RealTrends. Lone Wolf Technology got W+R Studios, while secured for itself Avail. It is not rare to see M&A at the finish of a year, but it is a promising sign in 2020, when a lot of things in the property sector appeared unclear and we weren’t sure if large companies were finding value in property data.