Significantly Expands RealPage Payments Platform
Company Website:
http://www.realpage.com
RICHARDSON, Texas -- (Business Wire)
RealPage,
Inc. (NASDAQ:RP),
a leading provider of software and data analytics to the real estate
industry, today announced its agreement to acquire ClickPay, a
comprehensive electronic payment platform servicing 2.3 million units
across the multifamily, HOA, condominium and co-op segments of real
estate. ClickPay significantly expands RealPage’s footprint into
the HOA owner-occupied segment of real estate, broadens the company’s
presence in the New York metropolitan market and solidifies the
integration of its front-end leasing platform into third-party property
management systems.
Highlights
-
Adds nearly $1.0 billion to the company’s total addressable market.
The HOA market is estimated to contain over 16 million units, and
RealPage estimates that current and future solutions applicable to the
market aggregate to a total opportunity of approximately $60 per unit
per year. 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.
-
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.
-
Creates one of the largest payment processing platforms for real
estate assets with over $55 billion of annual run-rate transaction
volume.
-
Expands RealPage’s presence in the New York metropolitan market,
complementing its recent acquisition of On-Site, the largest provider
of tenant screening services in New York. ClickPay’s client
base also represents a significant cross-sell opportunity for the
RealPage platform.
-
Expands RealPage functionality to include lockbox and online banking
capabilities, eliminating time-consuming and inefficient manual check
processing.
Steve Winn, Chairman and CEO of RealPage
“Expanding our payments solution to include ClickPay has the
potential to further accelerate one of the fastest growing areas of our
platform. According to data from the U.S. Census Bureau American Housing
Survey, over $525 billion of rent is collected annually. Only a fraction
of that volume is processed electronically, and we estimate that the
vast majority of the U.S. still pays rent with a paper check. In
addition, according to industry sources, owner occupied units in the HOA
segment are spending approximately $60 billion per year in fees. 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. 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.”
Matt Davis, Senior Vice President of RealPage Financial Services
“We intend to incorporate ClickPay’s capabilities into the
RealPage payment processing platform enabling clients to eliminate
site-level check handling. We anticipate ClickPay will remain a
standalone platform supporting most third-party property management
solutions, but will also begin integrating RealPage’s front office
capabilities tailored for rental real estate. 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.”
Ernest Muller, Chairman of ClickPay
“Our clients need assistance automating the entire resident life cycle.
By joining forces with RealPage, we will be able to grow our
best-in-class payment platform and instantly add a suite of
resident-facing solutions including online service requests, online
leasing, online concierge services, package tracking, utility billing,
insurance, and lead generation tools.”
Tom Kiernan, CEO of ClickPay
“Our entrepreneurial spirit, flexibility, and strong client
relationships have been central to our success. RealPage is committed to
ensuring we maintain our DNA in the way we execute and deliver value for
our clients.”
Financial and Operational Highlights
The acquisition purchase price of $218.5 million is composed of $76.3
million in shares of RealPage common stock and $142.2 million in cash.
The acquisition price is subject to working capital adjustments and a
holdback for potential indemnification claims. The cash portion of the
transaction was financed from the company’s existing credit facility.
RealPage completed the purchase of approximately 88% of the interests in
ClickPay at the time of the agreement and expects to finalize the
purchase of the remaining interests within the next six months. For the
year ended December 31, 2017, ClickPay possessed revenue of over
$22 million with negligible Adjusted EBITDA contribution. RealPage
estimates that ClickPay will contribute revenue of $23 million
for the remainder of 2018, representing 2018 revenue growth of
approximately 45%. ClickPay is expected to be immaterial to
RealPage’s 2018 Adjusted EBITDA. However, the company expects to achieve
revenue and expense synergies that will be accretive to its long-term
revenue growth and Adjusted EBITDA margin expansion objectives.
Ernest Muller and Tom Kiernan, Chairman and CEO of ClickPay,
respectively, will remain with the business in addition to approximately
100 employees. ClickPay is based in New York City.
About RealPage
RealPage is a leading global provider of software and data analytics to
the real estate industry. Clients use its platform to improve operating
performance and increase capital returns. Founded in 1998 and
headquartered in Richardson, Texas, RealPage currently serves over
12,400 clients worldwide from offices in North America, Europe and Asia.
For more information about RealPage, please visit www.realpage.com.
About ClickPay
As a leading platform for automating real estate receivables, ClickPay
accepts most payment methods, including checks, e-checks (ACH), credit
and debit cards. ClickPay offers integrated payment services to
increase operational efficiencies and enable profitable growth. The ClickPay
Portal provides property owners and managers with a customizable,
electronic solution to bill and collect payments to increase operational
efficiencies and increase resident satisfaction. To learn more, go to www.clickpay.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking” statements relating to the
expected financial and other benefits of the ClickPay acquisition
to RealPage and its current and future customers, including expected
market size opportunity, expected benefits of entering into the HOA
market, expanding the company’s presence in the New York metropolitan
market, and integration of RealPage’s front-end platform into
third-party property management systems, acceleration of one of the
fastest growth areas of our platform, the combined benefits of the ClickPay
acquisition and the previously announced On-Site acquisition, our plans
for the integration and expansion of ClickPay operations,
expectations regarding timing of the completion of the remaining
portions of the ClickPay transaction, ClickPay’s
contribution to RealPage’s 2018 revenue and Adjusted EBITDA, and the
achievement of revenue and expense synergies that will be accretive to
RealPage’s long-term revenue growth and Adjusted EBITDA margin expansion
objectives, and expectations regarding certain employees remaining with
the business after the acquisition. These forward-looking statements are
based on management's beliefs and assumptions and on information
currently available to management. Forward-looking statements include
all statements that are not historical facts and may be identified by
terms such as “expects,” “believes,” “plans,” or similar expressions and
the negatives of those terms. Those forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Additional factors that could
cause or contribute to such differences include, but are not limited to,
the following: (a) the possibility that general economic conditions,
including leasing velocity or uncertainty, could cause information
technology spending, particularly in the rental housing industry, to be
reduced or purchasing decisions to be delayed; (b) an increase in
insurance claims; (c) an increase in customer cancellations; (d) the
inability to increase sales to existing customers and to attract new
customers; (e) RealPage’s failure to integrate ClickPay or other
acquired businesses and any future acquisitions successfully or to
achieve expected synergies; (f) the timing and success of new product
introductions by RealPage or its competitors (including products
acquired through ClickPay or through other acquisitions); (g)
changes in RealPage’s pricing policies or those of its competitors; (h)
legal or regulatory proceedings; (i) the inability to achieve revenue
growth or to enable margin expansion; and (j) such other risks and
uncertainties described more fully in documents filed with or furnished
to the Securities and Exchange Commission (“SEC”) by RealPage, including
its Annual Report on Form 10-K filed with the SEC on March 1, 2018. All
information provided in this release is as of the date hereof and
RealPage undertakes no duty to update this information except as
required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180420005112/en/
Contacts:
RealPage
Rhett Butler, 972-820-3773
Investor Relations
RealPageMediaRelations@realpage.com
Source: RealPage, Inc.
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