"After a thorough search, we decided to use SEG due to their proven understanding of our business, deep industry expertise, and proven track record of creating very competitive processes. The SEG team did a phenomenal job keeping buyers engaged and moving aggressively through the process. All this resulted in a hugely successful outcome for the shareholders of Rentlytics with a 10x ARR multiple. SEG was the driver behind this success. They created value well in excess of their fee.”
Justin Alanis, Founder & CEO, Rentlytics

SEG Client, Rentlytics, Acquired By RealPage

Software Equity Group (SEG) announces its client, Rentlytics, has been acquired by RealPage, a leading provider of software and data analytics to the real estate industry. Rentlytics provides owners and operators with normalized data across multiple third-party systems, resolving system incompatibility, data accuracy issues and time-to-analysis delays. Rentlytics will expand the company’s business intelligence and performance analytics platform by nearly 900,000 additional multifamily units. SEG served as the exclusive advisor to LeaseLabs.

Highlights:

Rentlytics integrates with more property management software platforms than RealPage, thereby extending our ability to consolidate accounting and operating KPIs from more sources.

Rentlytics adds nearly 900,000 units of real time data to the RealPage data analytics platform, giving RealPage the ability to improve the precision of benchmarking and yield optimization tools. Approximately 200,000 units are new to RealPage.

Rentlytics has developed a new product called “Renovation Manager” that helps manage renovation workflow and provides better visibility into per-unit and per-property yields achievable through renovations. Over 10,000 properties are under renovation in the U.S. today as owners stretch for higher rental yields. RealPage intends to begin marketing this product to its clients immediately upon completion of the acquisition.

Steve Winn, Chairman and CEO of RealPage:
“Rentlytics expands our data footprint in the multifamily industry, thereby improving our benchmarking and precision forecasting capabilities. We intend to combine the real time data that Rentlytics has assembled with our existing business intelligence and data analytics platform, and offer the industry a more powerful, high precision tool to measure financial and operating performance.”

Justin Alanís, CEO of Rentlytics:
“I founded Rentlytics with the vision of connecting people and the technologies in our industry to the data that they need to make decisions. I am proud of the progress that our team has made towards achieving that goal and the clients that we have serviced. I discovered that RealPage shares our vision of the power of data, and believe that, by combining our unique platforms, we can accelerate the development of first-in-class analytics solutions for our clients.”

Keith Dunkin, SVP of RealPage Asset Optimization:
“The current Rentlytics platform is a true value-add to owners and operators, and we expect to continue to support it. Over time, we believe a combined RealPage and Rentlytics solution will offer an even more compelling advantage to clients. I am excited to welcome Rentlytics to our family, and look forward to utilizing Justin’s considerable expertise as we integrate our two platforms.”

Financial Highlights

The completion of the acquisition remains subject to certain standard conditions, which the company expects to be satisfied prior to the anticipated close sometime during the week of October 15, 2018. The company will acquire Rentlytics for an initial purchase price of approximately $57 million in cash. The acquisition price is subject to working capital and other adjustments and a holdback for potential indemnification claims. The company expects the acquisition of Rentlytics to contribute revenue of approximately $1.5 million and to contribute immaterially to its 2018 Adjusted EBITDA during the three-month period ending December 31, 2018. In addition, RealPage expects Rentlytics to contribute revenue of approximately $9 million during the full year ending December 31, 2019, representing growth of 35%.

About Software Equity Group

Software Equity Group (SEG) provides unparalleled M&A advisory services for emerging and established 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.