Indatus acquired by Realpage
RealPage plans to combine Indatus with its Level One live agent solutions.
Indatus provides a suite of cloud-based, smart answer automation and routing solutions that handle maintenance calls for over 11,000 apartment communities.
RealPage (NASDAQ:RP) is a leading global provider of software and data analytics to the real estate industry. The Company currently serves over 12,400 clients worldwide from offices in North America, Europe and Asia.
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PRESS RELEASE OVERVIEW
SEG'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.”
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.