LeaseLabs Acquired By RealPage

RealPage will acquire substantially all of the assets of LeaseLabs for an initial purchase price of approximately $103 million in cash and stock plus an earn out provision payable in cash of up to approximately $14 million upon achieving certain financial objectives.

LeaseLabs-Dana-Steven
Dana Zeff & Steven Ozbun, Founder, CEO & President

Client Description

The company

LeaseLabs is an award-winning provider of cloud-based digital marketing solutions to the multifamily real estate industry. LeaseLabs’ solutions are utilized by customers managing approximately 800,000 units in the multifamily real estate industry.

The software

The Company’s Full Stack Marketing suite enables property management companies to effectively increase traffic, drive ROI and retention, reduce marketing costs, and generate higher quality leads through a centralized platform.

Headquarters

San Diego, CA

Buyer Description

The company

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.

Headquarters

Richardson, TX

PRESS RELEASE OVERVIEW

SEG Client, LeaseLabs, Acquired By RealPage

Software Equity Group (SEG) announces its client, LeaseLabs, an award-winning provider of cloud-based, digital marketing solutions to the multifamily real estate industry, has been acquired by RealPage, a leading provider of software and data analytics to the real estate industry. The acquisition of LeaseLabs is expected to extend the RealPage marketing platform by adding marketing analytic services, creative content design, direct marketing through social media channels, reputation management and geo-targeting solutions. SEG served as the exclusive advisor to LeaseLabs.

LeaseLabs Full Stack Marketing optimizes lead generation through direct channels, and will be significantly expanded with RealPage solutions providing (i) marketing content, content management, and digital rights management from PropertyPhotos.com, (ii) websites and microsites, and (iii) Intelligent Lead Management (ILM). This combined offering will be branded as the Go Direct Marketing Suite.

Ashley Glover, Chief Operating Officer of RealPage
“LeaseLabs is an innovator of digital marketing solutions for multifamily operators, and RealPage plans to continue to invest in LeaseLabs as a hub of digital marketing innovation, strategy, and organic brand execution. The acquisition of LeaseLabs and launch of the Go Direct Marketing Suite enables us to address the emerging change in spending patterns as our clients shift marketing spend away from indirect lead sources and build long-term equity value in their brand.”

Steven Ozbun, President of LeaseLabs
“LeaseLabs clients depend on us to manage their direct lead channels recognizing that direct leads convert at a higher rate than traditional indirect lead sources. We are thrilled to become part of RealPage as they share our vision of the future of direct digital marketing.”

Dana Zeff, CEO of LeaseLabs
“Our pioneering character, innovativeness and client collaboration have been integral to our platform’s success. RealPage is committed to ensuring we maintain our brand persona in the way we execute and deliver maximum performance for our clients.”
Financial and Operational Highlights

The completion of the acquisition remains subject to certain standard conditions, including the completion of regulatory review. RealPage will acquire substantially all of the assets of LeaseLabs for an initial purchase price of approximately $103 million in cash and stock plus an earn out provision payable in cash of up to approximately $14 million upon achieving certain financial objectives. The acquisition price is subject to working capital adjustments with a 10% holdback for potential indemnification claims. For the full year 2018, LeaseLabs projects standalone revenue of $20 million, representing revenue growth of approximately 25%. The company expects the acquisition of LeaseLabs to contribute revenue of approximately $5 million and to contribute immaterially to its 2018 Adjusted EBITDA during the three month period ending December 31, 2018.

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