Real Estate

RealPage completes $300 million acquisition of Lease Rent Options

Expansion continues for real estate software provider

RealPage, a provider of software and data analytics to the real estate industry, announced Tuesday that it completed its $300 million acquisition of Lease Rent Options and related assets from The Rainmaker Group.

Lease Rent Options is a revenue management solution that empowers optimized pricing for over 1.5 million apartments.

The deal, which was initially announced in February, was originally expected to close in the second quarter, but the deal was delayed while the Department of Justice reviewed it to determine if the deal violated any antitrust provisions.

RealPage announced late last month that the DOJ cleared the deal of any antitrust issues, enabling the deal to officially close.

“We are excited to initiate our LRO integration plan,” said Steve Winn, chairman and CEO of RealPage. “Once integrated, YieldStar, LRO and Axiometrics are expected to form the industry’s most comprehensive suite of solutions for precision data analytics and asset optimization for rental housing assets.”

Earlier this year, RealPage announced that it was expanding its apartment data offerings by acquiring Axiometrics, a provider of apartment market data, for $75 million.

Now, the Lease Rent Options deal is done.

According to RealPage, the purchase price of $300 million in cash is subject to working capital adjustments and post-acquisition indemnification claims.

The company said that for the fourth quarter, it expects LRO will contribute non-GAAP revenue and adjusted EBITDA of approximately $2.6 million and $0.7 million, respectively.

When the company initially announced the deal, it said the acquisition helps the company be “better positioned to penetrate an emerging global market opportunity to optimize operational and transactional yields for rental housing assets.”

RealPage expects to completely integrate LRO’s services in 2018.

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