As reported in SEG’s 2018 Real Estate Software M&A Snapshot, real estate transaction volume last year turned out to be another record year. Not only were 100 transactions closed in 2017 – a record – but deal volumes have grown by a CAGR of 17% since 2014.
The year also proved to be a busy one for SEG which was involved in a record 10 deals. With that in mind, here is a success story from the year that was.
Tenmast Software Acquired by MRI Software
In October 2017, it was announced that Tenmast Software, a leading provider of public housing authority (PHA) and private affordable housing management software, was acquired by MRI Software.
According to MRI CEO, Patrick Ghilani, the deal will help MRI to further expand its solutions in ‘property management and compliance to provide public and affordable housing organizations with a broader, more comprehensive set of solutions.’
The move into public housing management software is driven by demand growth which is outpacing supply as only one in five people who apply for public housing qualify. This creates a gap that is currently being filled by non-profit organizations who lack the management tools to ensure compliance with state and federal regulations.
The deal will allow the combined company to expand its reach in the sector while also providing the resources needed for continued development. It was MRI’s fourth acquisition in the multifamily space since late 2016 – including the acquisition of HAPPY Software, which was announced earlier this year.
Besides the financial aspects of this transaction, Tenmast’s solution will help improve access to affordable housing for millions of seniors – who make up 55% of all public housing residents. As such, this deal is expected to have a tremendous impact on the communities where the software solution is implemented.