seg real estate software m&a valuations and activity

SEG-Landscape: Multi-Family/Residential Real Estate Technology*

Accounting

Applicant Screening

Property Mgmt. CRM

Web Portals /Marketing

Internet Listings

Revenue Mgmt.

Spend Mgmt.Utility Billing & Energy Mgmt.

Payments

Property Management

Vendor Ecosystem

Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 1

Acquired* Not all inclusive

http://www.infor.com/

Real Estate Software Market Update & Ecosystem / Landscape of Software Providers

October 2016

SOFTWARE EQUITY GROUP | CONFIDENTIAL

Focus on Advice

Multi-service

Multi- Industry

Focus on Software

Advisory Boutiques

Bulge Bracket Firms

IB Boutiques

About Software Equity Group• Twenty-three year, exclusive focus on advisory services

to B2B enterprise software companies in the lower middle market

• Advisory services encompass:

• Strategic exit• Growth capital• Buyout • Inorganic growth via acquisition• Fairness opinions and valuations• Board advisory services

• Clients span virtually every technology, product category, delivery model and financial profile

• Global presence providing advice and guidance to more than 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel

• Strong and highly collaborative cross-functional team leveraging transaction, operating, legal and engineering experience

• Unparalleled software industry reputation, track record and industry research

• Highly referenceable base of past clients and buyers / investors

3

Billions of dollars of lower market software deals, endless buyer and seller references, industry leading close rates, upper decile valuation results.


SEG’s Strong Real Estate Industry Transaction Experience



Software Equity Group’s Client, CallMaX Acquired By MRI Software

October 4, 2016 – MRI Software, a global leader in real estate software solutions, announced it has acquired Atlanta-based CallMaX, a leader in SaaS and mobile front-office solutions for apartment communities in the multifamily real estate industry. CallMaX’s automated communications platform enables communities to significantly improve their leasing and marketing functions, resident communications, office management and maintenance operations with an innovative combination of automated answering and outbound call services, mobile and web technology.

“In today’s on-demand digital economy, prospects and residents expect leasing and property management teams to be available 24/7,” said Patrick Ghilani, Chief Executive Officer of MRI Software. “With the addition of CallMaX to our portfolio, MRI is now able to offer our multifamily customers a complete marketing and automated communications suite that allows them to generate more and higher quality leads, increase resident satisfaction and improve customer service.”

CallMaX estimates that approximately 80% of multifamily property management firms still rely on inefficient, error-prone and costly approaches to call management. These systems are plagued by poor quality of service, slow response times and high human error rates, which – in turn – lead to lost revenue from missed leasing opportunities and high resident turnover. CallMaX’s front-office solutions enable property management teams to automate inbound call processing, broadcast messages, facilitate resident surveys, and manage package tracking and notifications. Additionally, through the combination of MRI’s Connect suite and CallMaX’s services, marketing and leasing teams can capture and track all prospect leads across channels and analyze campaign performance to optimize marketing ad spend. Built atop a multi-modal communications platform, CallMaX’s solutions enable prospect and resident communications via traditional telephony, text, email, and live web and text chat – allowing prospects and residents to reach leasing and property management teams anytime using their preferred method of communication.

“We are thrilled to be joining forces with MRI Software, a respected and leading brand in the real estate technology sector, and look forward to developing the many synergies that exist between our two companies,” said John Lamb, previously Chief Operating Officer of CallMaX and now Managing Director of MRI’s CallMaX division. “MRI’s focus on customer success aligns perfectly with our commitment to delivering high-quality communications and unparalleled service for leasing teams, property managers, prospects and residents.”

Recent SEG News

REAL ESTATE TECHNOLOGY LANDSCAPE

SEG-Landscape: Multi-Family/Residential Real Estate Technology*

Accounting

Applicant Screening

Property Mgmt. CRM

Web Portals /Marketing

Internet Listings

Revenue Mgmt.

Spend Mgmt.Utility Billing & Energy Mgmt.

Payments

Property Management

Vendor Ecosystem



http://www.infor.com/

SEG-Landscape: Commercial/Corporate Real Estate Technology*

Data/Info. Services

Facilities Mgmt.

Investment Mgmt.

IWMS

Facilities Design/AEC

Construction

Vendor Ecosystem

Capital Planning

Vertical Providers

Space Mgmt.Lease

Administration



SEG-Landscape: “For Sale” Real Estate Technology*

Property Search/ Lead Gen

Home Services/ Lead Gen

Broker CRM

Vendor Ecosystem

Broker Marketing

MLSResidential

Construction

Property Search (Vacation Rentals)

Mortgage Orig./ Finance

Other



SEG-Landscape: Sector Public/Private Capital

Pu

bli

c Ca

pit

alP

riva

te C

apit

al

Multi-Family Commercial/Corporate “For Sale”


BRIEF MARKET UPDATE – PUBLIC MARKETS & M&A

Public Companies: Real Estate Technology

Operating Performance and Market Valuation

* Data as of October 10, 2016


Company Ticker CategoryEnterprise

Value (mm)LTM Rev.

(mm)LTM EBITDA

(mm)LTM Rev Growth

LTM Gross Margin

LTM EBITDA Margin

EV / Rev

EV/ EBITDA

Angie's List, Inc. ANGI Home Service Lead Gen $537.3 $340.2 $33.1 1.7% 73.5% 9.7% 1.6x 16.2xAppFolio, Inc. APPF Property Management $617.1 $90.1 -$10.7 48.9% 55.1% (11.9%) 6.8x -AVEVA Group plc. AVV Facilities Design / AEC $1,454.2 $249.5 $59.0 -3.5% 92.7% 23.7% 5.8x 24.6xCoreLogic, Inc. CLGX Data/Info Services $4,955.0 $1,731.1 $360.8 18.3% 47.4% 20.8% 2.9x 13.5xCoStar Group Inc. CSGP Data/Info Services $6,769.2 $788.7 $170.9 23.5% 76.7% 21.7% 8.6x 39.6xEllie Mae, Inc. ELLI Mortgage Org./Finance $3,318.8 $297.5 $53.7 42.0% 66.2% 18.1% 11.2x 61.8xNemetschek AG XTRA:NEM Facilities Design / AEC $2,498.9 $348.2 $73.9 24.0% 52.7% 21.2% 7.2x 33.4xRealPage, Inc. RP Property Management $2,031.1 $514.4 $68.4 18.5% 57.4% 13.3% 3.9x 29.7xZillow Group, Inc. Z Property Search/ Lead Gen $5,736.6 $740.5 $7.2 54.4% 91.2% 1.0% 7.7x - Median: $2,498.9 $348.2 $59.0 23.5% 66.2% 18.1% 6.8x 29.7x Average: $3,102.0 $566.7 $90.7 25.3% 68.1% 13.1% 6.2x 31.3x High: $6,769.2 $1,731.1 $360.8 54.4% 92.7% 23.7% 11.2x 61.8x Low: $537.3 $90.1 -$10.7 -3.5% 47.4% (11.9%) 1.6x 13.5x

* Financial data sourced by Capital IQ

42289

42297

42305

42313

42321

42331

42340

42348

42356

42367

42376

42384

42395

42403

42411

42422

42430

42438

42446

42457

42465

42473

42481

42489

42499

42507

42515

42524

42534

42542

42550

42559

42569

42577

42585

42593

42601

42611

42620

42628

42636

42646

0.00x

2.00x

4.00x

6.00x

8.00x

10.00x

12.00x

14.00xAppFolio, Inc. (NasdaqGM:APPF) - TEV/Total RevenuesCoStar Group Inc. (NasdaqGS:CSGP) - TEV/Total RevenuesEllie Mae, Inc. (NYSE:ELLI) - TEV/Total RevenuesRealPage, Inc. (NasdaqGS:RP) - TEV/Total Revenues


Oct-15

Oct-15

Oct-15

Nov-15

Nov-15

Nov-15

Dec-15

Dec-15

Dec-15

Dec-15

Jan-16

Jan-16

Jan-16

Feb-16

Feb-16

Feb-16

Mar-1

6

Mar

-16

Mar-1

6

Mar-

16

Apr-16

Apr-16

Apr-16

Apr-16

May-1

6

May-1

6

May-1

6

Jun-1

6

Jun-1

6

Jun-1

6

Jun-1

6Ju

l-16

Jul-1

6

Jul-1

6

Aug-16

Aug-16

Aug-16

Aug-16

Sep-1

6

Sep-1

6

Sep-1

6

Oct-16

-1.00b

0.00b

1.00b

2.00b

3.00b

4.00b

5.00b

6.00b

7.00b

8.00b

AppFolio, Inc. (NasdaqGM:APPF) - Market CapitalizationCoStar Group Inc. (NasdaqGS:CSGP) - Market CapitalizationEllie Mae, Inc. (NYSE:ELLI) - Market CapitalizationRealPage, Inc. (NasdaqGS:RP) - Market Capitalization

Market Capitalization

EV/Revenue

Public Companies: Real Estate SaaS Providers


Top 10 Real Estate Technology M&A by Enterprise Value (EV)

*Data set last three years


Date Buyer SellerEnterprise Value

($mm) EV / Rev EV / EBITDA Category Business Description12/04/15 Expedia, Inc. HomeAway, Inc. $3,347.8 6.2x 29.2x Property Search HomeAway, Inc. operates an online vacation rental property marketplace that enables property owners

and managers to market properties for rental to vacation travelers.

07/28/14 Zillow, Inc. (NasdaqGS:Z)

Trulia, Inc. (NYSE:TRLA)

$3,090.5 14.8x - Property Search Trulia, Inc. provides tools to research homes and neighborhoods for consumers through Web and mobile applications. The company, through its tools, also enables real estate professionals to market their listings.

11/14/14 REA Group Limited

Move, Inc $963.2 4.0x 121.3x Property Search Move, Inc. operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America.

04/28/16 Oracle Corporation

Textura Corporation

$600.0 6.5x - Commercial Construction

Textura Corporation provides collaboration and productivity solutions for the construction industry.

03/03/14 CoStar Group Inc. (NasdaqGS:CSGP)

Apartments.com, L.L.C.

$585.0 6.8x 22.9x Property Search Apartments.com, L.L.C. provides apartment Internet listing subscription services. It represents various rental units from managed properties, newspaper classifieds, and for-rent-by-owner properties.

12/17/15 CoreLogic, Inc. (NYSE:CLGX)

FNC, Inc. $475.0 - - Mortgage Orig. / Finance

FNC, Inc. develops real estate collateral information technology.

09/22/14 Symphony Technology Group

McGraw-Hill Construction Information Group


McGraw-Hill Construction Information Group provides essential data, news, insights, and intelligence to better inform construction professionals’ decisions and strengthen their market position.

08/14/14 Realogy Group LLC

ZipRealty, Inc. $157.3 2.3x - Broker CRM / Marketing

ZipRealty, Inc. operates as an online technology-enabled real estate brokerage company in the United States.

07/20/15 Roper Technologies, Inc. (NYSE:ROP)

On Center Software, Inc.

$157.0 - - Commercial Construction

On Center Software, Inc. develops and delivers construction automation management solutions for companies in the United States and internationally.

07/22/15 Zillow Group, Inc. (NasdaqGS:ZG)

DotLoop, LLC $108.0 7.2x - Broker CRM / Marketing

DotLoop, LLC provides online collaborative solutions that enable real estate agents, brokers, and clients to complete the transaction process from offer to close in one place.


Top 10 Real Estate Technology M&A by EV/Revenue Multiple


* Data set last three years

Date Buyer SellerEnterprise Value

($mm) EV / Rev EV / EBITDA Category Business Description01/07/16 Quikr India

Private LimitedmaxHeap Technologies Private Limited

$200.0 27.4x - Property Search maxHeap Technologies Private Limited offers home seekers, sellers, and real estate professionals with an online real estate ecosystem.

07/28/14 Zillow, Inc. (NasdaqGS:Z)

Trulia, Inc. (NYSE:TRLA)

$3,090.5 14.8x - Property Search Trulia, Inc. provides tools to research homes and neighborhoods for consumers through Web and mobile applications. The company, through its tools, also enables real estate professionals to market their listings.

07/22/15 Zillow Group, Inc. (NasdaqGS:ZG)

DotLoop, LLC $108.0 7.2x - Broker CRM / Marketing

DotLoop, LLC provides online collaborative solutions that enable real estate agents, brokers, and clients to complete the transaction process from offer to close in one place.

09/05/16 Mitula Group Limited (ASX:MUA)

Dot Property Pte. Ltd.

$8.9 6.9x - Property Search Dot Property Pte. Ltd. owns and operates property portal Websites and an offline media in South East Asia.

03/03/14 CoStar Group Inc. (NasdaqGS:CSGP)

Apartments.com, L.L.C.

$585.0 6.8x 22.9x Property Search Apartments.com, L.L.C. provides apartment Internet listing subscription services. It represents various rental units from managed properties, newspaper classifieds, and for-rent-by-owner properties.

04/28/16 Oracle Corporation

Textura Corporation


Textura Corporation provides collaboration and productivity solutions for the construction industry.

12/04/15 Expedia, Inc. HomeAway, Inc. $3,347.8 6.2x 29.2x Property Search HomeAway, Inc. operates an online vacation rental property marketplace that enables property owners and managers to market properties for rental to vacation travelers.

04/19/16 Zoopla Property Group Plc (LSE:ZPLA)

The Property Software Group

$108.0 4.7x 14.7x Property Management

The Property Software Group develops and supplies software and media solutions to the property industry.

10/03/14 Nemetschek AG (XTRA:NEM)

Public Company $100.0 4.5x - Facilities Design / AEC

Bluebeam Software, Inc. develops PDF solutions for digitizing project communications.

06/02/15 RealPage, Inc. (NasdaqGS:RP)

Indatus ICIM Corp., Select Assets

$49.0 4.3x 20.4x Property Management

Indatus ICIM Corp. provides a suite of cloud-based, smart answer automation and routing solutions that handle maintenance calls for over 11,000 apartment communities.

* SEG served as exclusive advisor to Indatus in its sale to RealPage


Real Estate Technology M&A Activity


1Q122Q12

3Q124Q12

1Q132Q13

3Q134Q13

1Q142Q14

3Q144Q14

1Q152Q15

3Q154Q15

1Q162Q16

3Q16

6

1817

1312

9

1517

11

2321

1718

1718

22

26

18

27

2012 2013 2014 2015 2016 Projec-tion

4251

72 75

95

7.0%5.6%

5.6%

16.9%

7.0%

9.9%1.4%

21.1%

12.7%

1.4%

11.3%

Property Management

Data/Information Services

Investment Management

IWMS & Facilities Man-agement

Facilities Design

Commercial Construction

Residential Construction

Property Search

Home Services Search

Broker CRM/Marketing

Mortgage Orig. / Finance

Other

Annual M&A Volume

Quarterly M&A Volume

YTD M&A Volume By Category


LTM Real Estate Technology M&A Transactions


Date Buyer SellerEnterprise

Value EV / Revenues EV / EBITDA09/28/16 OOO KEH eCommerce Domofond LLC - - -09/23/16 Immofacile SA Poliris SAS - - -09/22/16 Accruent, LLC VERISAE, INC. - - -09/15/16 Accruent, LLC Business Integration Group, Inc. - - -09/07/16 Common Living Inc. Skylight, Inc. - - -09/07/16 Sopra Steria Group (ENXTPA:SOP) Active3D SAS - - -09/06/16 First American Financial Corporation (NYSE:FAF) RedVision Systems, Inc. - - -09/06/16 International Document Services, Inc. Encomia, LLC - - -09/05/16 Mitula Group Limited (ASX:MUA) Dot Property Pte. Ltd. $8.9 6.9x -08/30/16 NEXTracker Inc. BrightBox Technologies, Inc. - - -08/29/16 Bellrock Property & Facilities Management Limited Concerto Support Services Limited - - -08/24/16 Mercury Network, LLC Platinum Data Solutions, Inc. - - -08/03/16 Kvartal OOO iDom - - -08/03/16 Renovate America, Inc. CakeSystems, Inc. - - -08/02/16 Zillow Group, Inc. (NasdaqGS:ZG) Bridge Interactive Group, LLC - - -08/01/16 Central Innovation Holdings Pty Limited Cadimage Group Limited - - -07/31/16 Jobookit Holdings Ltd. (TASE:JBKT) Homeez Ltd. - - -07/26/16 Fidelity National Financial, Inc. (NYSE:FNF) Commissions Inc. - - -07/20/16 Deltek, Inc. Union Square Software Ltd. - - -07/14/16 Matterport, Inc. Inspired Labs Ltd - - -07/07/16 Acuity Brands, Inc. (NYSE:AYI) DGlogik, Inc. - - -07/06/16 Sarouty.ma SeleKtimmo Moroccan real estate portal - - -07/06/16 UNIFI Labs, Inc. IGS BIM Solutions - - -07/06/16 Luzerner Kantonalbank AG (SWX:LUKN) Bricks & Bytes AG - - -07/06/16 Immobiliare.it S.p.A. Enalquiler Rental Online, S.L. - - -07/01/16 Total Specific Solutions (TSS) B.V. NCCW Holding B.V. - - -06/23/16 Real Capital Analytics, Inc. SiiLA Investors, LLC - - -06/20/16 MassVenture Inc. Equity Brick, LLC - - -06/09/16 Scaleworks Associates FollowUp.cc - - -06/09/16 Immobilien Scout GmbH my-next-home.de And immodirekt.at - - -06/08/16 GALIAN SARL Consortium des Professionnels de l'Immobilier - - -06/03/16 MRI Software LLC Integratec Services LLC - - -06/01/16 Condeco Software Inc. Interactive Ideas LLC - - -05/31/16 Pragma Capital Sarl PROPRIETES-PRIVEES - - -05/20/16 Dodge Data & Analytics, Inc. Adenium Systems, Inc. - - -05/18/16 Genstar Capital, LLC Accruent, LLC - - -05/17/16 RealPage, Inc. (NasdaqGS:RP) Portfolio Asset Management $4.8 - -05/04/16 CoStar UK Limited THOMAS DAILY GmbH - - -04/28/16 Goyo Intex Co., Ltd. (JASDAQ:7519) ReCI Inc $1.2 - -04/27/16 TripAdvisor Inc. (NasdaqGS:TRIP) HouseTrip SA - - -





Value EV / Revenues EV / EBITDA04/22/16 Brandspots We Are Pop Up $0.2 - -04/19/16 Placester, Inc. The WebMart Network Pty Limited - - -04/19/16 Zoopla Property Group Plc (LSE:ZPLA) The Property Software Group $108.0 4.7x 14.7x04/14/16 Zuuse Pty Ltd Mercury Computer Systems (Aust) Pty Ltd. - - -04/14/16 BuildingIQ, Inc. (ASX:BIQ) NorthWrite Incorporated, Certain Assets $3.0 - -03/23/16 Dodge Data & Analytics, Inc. Ingenium Technologies Corporation - - -03/18/16 The International MLS Wasatch Digital Media LLC - - -03/17/16 Aconex Limited (ASX:ACX) CONJECT Holding GmbH $73.6 2.7x 81.3x03/17/16 NEXT Co., Ltd. (TSE:2120) Zumper, Inc. - - -03/04/16 Placester, Inc. HomeFinder.com, LLC - - -03/01/16 Mitula Group Limited (ASX:MUA) Nuroa Internet S.L. $3.4 - -02/26/16 Global ICT (Thailand) Co., Ltd. Demeter ICT Company Limited $0.2 - -02/24/16 Sopra Banking Software SA Cassiopae SAS - - -02/19/16 essensys Ltd Hubcreate Ltd. - - -02/15/16 ShowingTime.com, Inc. RealEstate Business Intelligence, LLC - - -02/11/16 News Corp Australia Pty Limited DIAKRIT International Ltd. - - -02/08/16 SketchUp Sefaira Limited - - -02/03/16 ServiceChannel, Inc. Big Sky Technologies, Inc. - - -02/02/16 Biotricity Inc. (OTCBB:BTCY) MetaSolutions, Inc. - - -02/02/16 Yardi Systems, Inc. Immobilien-Management-Systeme GmbH - - -02/02/16 Zillow Group, Inc. (NasdaqGS:ZG) Naked Apartments, Inc. $13.0 - -02/01/16 Addnode Group AB (publ) (OM:ANOD B) 5D Systemkonsult AB - - -01/31/16 Zumper, Inc. PadMapper Inc. - - -01/28/16 RentPost, Inc. iRealtyManager - - -01/25/16 - CurbCall Inc. - - -01/20/16 Onboard Informatics LLC AddressReport, Inc. - - -01/19/16 OpenTech Alliance, Inc. Storage Treasures, Inc. - - -01/18/16 Sprengnetter GmbH R&S Software GmbH - - -01/11/16 Alma Mediapartners Oy Raksa ja KotiKauppa Oy - - -01/11/16 Topcon Positioning Systems, Inc. Viasys VDC Oy - - -01/07/16 Quikr India Private Limited maxHeap Technologies Private Limited $200.0 27.4x -12/21/15 ShoreTel, Inc. (NasdaqGS:SHOR) Corvisa Services, LLC $8.5 - -12/18/15 Nemetschek AG (XTRA:NEM) Solibri, Inc. $48.8 - -12/17/15 CoreLogic, Inc. (NYSE:CLGX) FNC, Inc. $475.0 - -12/16/15 Robert Bosch GmbH RE'FLEKT GMBH - - -12/16/15 ERM Power Limited (ASX:EPW) Greensense Pty Ltd $3.8 - -12/14/15 Chronos Solutions, LLC Cogent Road, Inc. - - -12/09/15 Moody's Corporation (NYSE:MCO) BlackBox Logic LLC - - -12/04/15 Expedia, Inc. HomeAway, Inc. $3,347.8 6.2x 29.2x11/20/15 Daikin Applied Americas Inc. Riptide IO Inc. - - -





Value EV / Revenues EV / EBITDA11/17/15 On-Site.com, Inc. Ellipse Communications, Inc. - - -

11/12/15 Centrica Nederland B.V. Panoramic Power Ltd. $60.0 - -

11/10/15 VivaReal Inc. Sua House S/A - - -

11/06/15 DP Logiciels SAS Entities SAS - - -

11/02/15 JDM Technology Group LEVESYS Pty Ltd - - -

10/22/15 Duke Energy Corporation (NYSE:DUK) Phoenix Energy Technologies, Inc. - - -

10/15/15 Aareon Nederland B.V. Square DMS Groep B.V. - - -

10/15/15 Salvia Développement SAS A.S.C.-Immo NV And ID BAT - - -

10/14/15 Ellie Mae, Inc. (NYSE:ELLI) Mortgage Returns LLC - - -



Selected SEG Real Estate Transactions

Software Equity Groups’ Client Dean Evans & Associates, has received an investment from JMI Equity

SAN DIEGO, CA –April 15, 2014. Software Equity Group, LLC (SEG) announced today its client, Dean Evans & Associates, Inc. (dba Event Management Systems) the leading provider of facility scheduling and event management software, has received a strategic growth equity investment from JMI Equity, a leading growth equity firm focused on investing in leading software and technology-enabled services companies.

Founded in 1986 and headquartered in Centennial Colorado, Dean Evans & Associates (DEA) provides a full suite of meeting and event scheduling, resource management, academic scheduling, shared workspace management (office “hoteling”), web calendaring and online registration/survey solutions. More than 4,000 organizations in over 75 countries rely on DEA’s Event Management System (EMS) software, including many Fortune 100 companies and other leading corporations, higher education institutions, law firms, conference centers, religious organizations, hospitals, cultural venues and sports facilities.

“For over 25 years, our team has been focused on providing our customers with the best in facility management software, along with the highest levels of customer service,” said Dean Evans, CEO and founder of DEA. ”EMS is a premier brand with a strong competitive advantage, offering the most comprehensive package of services on the market. With JMI’s expertise in growing enterprise software companies, along with its experience in higher education, we feel better than ever about our ability to continue to innovate and grow our offering.”

“We share the DEA team’s vision for the future and look forward to supporting the company in achieving its growth objectives,” said Brian Hersman, General Partner at JMI Equity. ”DEA’s opportunity fits well with JMI’s strategy of bringing expertise and resources to build on a foundation of strong market and product leadership.”

“I have been approached over the years by numerous M&A advisors. From the initial introduction, to the closing, SEG was clearly more knowledgeable about the M&A process, the market that I serve and the value of my company. SEG quickly and efficiently took my company to market finding a buyer that exceeded my expectations. SEG’s experience and confidence was apparent throughout the entire process.”

Dean Evans, Founder & Former CEODean Evans and Associates


Selected SEG Real Estate Transactions

Software Equity Group's Client, Indatus, Acquired By RealPage

CARROLLTON, Texas (June 2, 2015) – RealPage, Inc. (NASDAQ: RP), a leading provider of on-demand software and software-enabled services to the rental housing industry, today announced it has acquired select assets of ICIM Corporation, marketed under the trade name Indatus. Indatus provides a suite of cloud-based, smart answer automation and routing solutions that handle maintenance calls for over 11,000 apartment communities. The solutions enable property owners and managers to increase the efficiency and accountability of maintenance staff, in addition to ensuring maintenance and emergency calls are promptly resolved.

RealPage plans to combine the Indatus solutions with its Level One live agent solutions. The combined offering is expected to enable unmatched lead and resident management capabilities targeted not only to the multifamily rental housing market, but also to the single family and vacation rental markets.

“Our clients will have the option of choosing a custom combination of live agent response and answer automation for leasing or maintenance calls,” said Michael Daley, president of Level One at RealPage. “Live agent response is the most effective way to significantly increase capture rates for leads and improve resident satisfaction on service calls, but new smart answer automation capabilities fill a need for some properties wanting a low-touch option for calls to be answered and managed. We believe the capabilities acquired through Indatus give us the ability to offer compelling new products, including a powerful new solution that captures maintenance calls through answer automation, transcribes the calls with our live agents and injects a service request seamlessly into any property management system – greatly increasing tracking accuracy and the effectiveness of the local maintenance technicians.”

“We believe the acquisition of Indatus creates revenue synergies that are compelling across all rental housing markets and selected RealPage product families,” said Bryan Hill, CFO of RealPage. “As we combine the two platforms over time, we also expect to remove redundant technology and costs. Most importantly, Indatus serves rental housing units that are new to RealPage, increasing our total units that use one or more of our solutions to over 10 million. These unique units offer a tremendous opportunity to accelerate revenue growth through cross-selling our current solutions, which possess a $350 per year potential per conventional property unit.”

Financial Summary

The acquisition purchase price of approximately $49.0 million is subject to certain adjustments, including up to $2.0 million in additional earn-out consideration that may become payable if certain post-closing revenue milestones are achieved. For the trailing 12 months ended March 31, 2015, revenue for Indatus was $11.5 million with Adjusted EBITDA of $2.4 million. The company expects to integrate the acquisition into its existing live agent solutions over the remainder of 2015. The acquisition is expected to contribute revenue of $7.0 million to $7.5 million and Adjusted EBITDA of $1.2 million to $1.5 million in 2015.

“My business partner and I knew we were in a good window of opportunity to sell our company. We had grown the business together for 25 years and the industry tail winds were making valuations attractive. We were getting inundated with calls from PE firms and really did not know where to turn first to start investigating exit options. We had made some inquiries with the larger M&A firms but we were not impressed with what we were hearing or with the arrogance they portrayed on the initial call. We were given Software Equity’s name by a fellow industry vendor who had used them previously. Our initial call was with Allen Cinzori. From the beginning, you could immediately tell that Allen really understood the process and cared about his clients. After a few more calls with Allen and checking with some past SEG clients, we made the decision to go with SEG. Allen, Brad Weekes and the SEG staff worked tirelessly with us to build a compelling story around our company. They brought interested parties, both strategic and private equity, to the table. They were always honest and worked with integrity. SEG attracted multiple bidders for our company that increased the sales price. In the end, I feel like we ended up with the absolute best deal possible. I have no regrets about using SEG for the sale of our company. If I am lucky enough to be in the same position again, they will be the only investment banking firm I will call.

David Durik, CEOICIM Corporation (d/b/a Indatus)

SEG Contact Information

Kris Beible(858) 509-2800

[email protected]

The information contained in this Report is obtained from sources that SEG Capital Advisors LLC (“SEG”) believes to be reliable. However, SEG makes no representations or warranties, express or implied, about the accuracy, completeness or fairness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Any person or entity reviewing this report (a) should conduct its own diligence and reach its own conclusions regarding its business transactions, (b) should not rely upon any conclusions reached by SEG, and (c) should consult its own advisors regarding its tax, accounting, financial and/or business decisions. SEG or its affiliates may have an interest in one or more of the securities or companies discussed herein. Financial data was provided by Capital IQ. This Report may not be reproduced in whole or in part without the expressed prior written authorization of SEG or one of its affiliates.

Software Equity Group (SEG) is a boutique investment bank and M&A advisory serving emerging and middle market software companies. For more than twenty years, SEG has worked alongside its software industry clients to drive extraordinary outcomes for the client's shareholders, employees and customers. Over this time period, SEG has managed hundreds of sell-side M&A transactions, representing billions of dollars of aggregate transaction value. SEG's unwavering commitment to the software industry equates to unmatched expertise across software industry product categories, delivery models, technology and end market verticals; and unrivaled access to key decision makers among strategic and private equity buyers.

About Software Equity Group

Disclaimer