Market Insights by SEG: RealPage Acquires ClickPay: Expands Presence in HOA Market

SEG Sector Deals provide transaction highlights, relevant insights, and SEG’s perspective on interesting M&A deals within the software industry. 

RealPage announced the acquisition of ClickPay for $218.5M (9.9x EV/Revenue), its third largest acquisition to date. ClickPay is a provider of an electronic payment platform, servicing 2.3M units across multifamily, HOA, condominium and co-op segments of real estate. Furthermore, the acquisition significantly expands RealPage’s presence in the HOA market and puts the company in more direct competition with payment platforms like PayLease (backed by Vista Equity Partners).

Over the past year, RealPage has spent almost $1B on acquisitions, including notable transactions Rainmaker Group ($289.5M) and On-Site ($250M).

SEG’s Take

This transaction reflects the health of the M&A markets, particularly in the real estate software sector. The transaction follows a record setting year for the sector, as 2017 real estate software deal volume reached 100 transactions. According to SEG’s 2018 Real Estate Software Snapshot, deal volume continued to grow for the fourth consecutive year, and has grown by 17% on a CAGR basis since 2014. SEG has tracked a number of notable sector transactions in 1Q18, which points to the continuing health of the real estate software M&A market.

Seller Business Description:

ClickPay provides an electronic payment platform to the real estate industry. HQ: New York, NY.

Buyer Business Description:

RealPage (NasdaqGS:RP) provides software and data analytics for the real estate industry in the U.S. HQ: Richardson, TX. See Press Release.