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SEG-Landscape: Multi-Family/Residential Real Estate Technology*
Accounting
Applicant Screening
Property Mgmt. CRM
Web Portals /Marketing
Internet Listings
Revenue Mgmt.
Spend Mgmt.Utility Billing & Energy Mgmt.
Payments
Property Management
Vendor Ecosystem
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 1
Acquired* Not all inclusive
Real Estate Software Market Update & Ecosystem / Landscape of Software Providers
October 2016
SOFTWARE EQUITY GROUP | CONFIDENTIAL
Focus on Advice
Multi-service
Multi- Industry
Focus on Software
Advisory Boutiques
Bulge Bracket Firms
IB Boutiques
About Software Equity Group• Twenty-three year, exclusive focus on advisory services
to B2B enterprise software companies in the lower middle market
• Advisory services encompass:
• Strategic exit• Growth capital• Buyout • Inorganic growth via acquisition• Fairness opinions and valuations• Board advisory services
• Clients span virtually every technology, product category, delivery model and financial profile
• Global presence providing advice and guidance to more than 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel
• Strong and highly collaborative cross-functional team leveraging transaction, operating, legal and engineering experience
• Unparalleled software industry reputation, track record and industry research
• Highly referenceable base of past clients and buyers / investors
3
Billions of dollars of lower market software deals, endless buyer and seller references, industry leading close rates, upper decile valuation results.
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 3
SEG’s Strong Real Estate Industry Transaction Experience
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 4
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 5
Software Equity Group’s Client, CallMaX Acquired By MRI Software
October 4, 2016 – MRI Software, a global leader in real estate software solutions, announced it has acquired Atlanta-based CallMaX, a leader in SaaS and mobile front-office solutions for apartment communities in the multifamily real estate industry. CallMaX’s automated communications platform enables communities to significantly improve their leasing and marketing functions, resident communications, office management and maintenance operations with an innovative combination of automated answering and outbound call services, mobile and web technology.
“In today’s on-demand digital economy, prospects and residents expect leasing and property management teams to be available 24/7,” said Patrick Ghilani, Chief Executive Officer of MRI Software. “With the addition of CallMaX to our portfolio, MRI is now able to offer our multifamily customers a complete marketing and automated communications suite that allows them to generate more and higher quality leads, increase resident satisfaction and improve customer service.”
CallMaX estimates that approximately 80% of multifamily property management firms still rely on inefficient, error-prone and costly approaches to call management. These systems are plagued by poor quality of service, slow response times and high human error rates, which – in turn – lead to lost revenue from missed leasing opportunities and high resident turnover. CallMaX’s front-office solutions enable property management teams to automate inbound call processing, broadcast messages, facilitate resident surveys, and manage package tracking and notifications. Additionally, through the combination of MRI’s Connect suite and CallMaX’s services, marketing and leasing teams can capture and track all prospect leads across channels and analyze campaign performance to optimize marketing ad spend. Built atop a multi-modal communications platform, CallMaX’s solutions enable prospect and resident communications via traditional telephony, text, email, and live web and text chat – allowing prospects and residents to reach leasing and property management teams anytime using their preferred method of communication.
“We are thrilled to be joining forces with MRI Software, a respected and leading brand in the real estate technology sector, and look forward to developing the many synergies that exist between our two companies,” said John Lamb, previously Chief Operating Officer of CallMaX and now Managing Director of MRI’s CallMaX division. “MRI’s focus on customer success aligns perfectly with our commitment to delivering high-quality communications and unparalleled service for leasing teams, property managers, prospects and residents.”
Recent SEG News
REAL ESTATE TECHNOLOGY LANDSCAPE
SEG-Landscape: Multi-Family/Residential Real Estate Technology*
Accounting
Applicant Screening
Property Mgmt. CRM
Web Portals /Marketing
Internet Listings
Revenue Mgmt.
Spend Mgmt.Utility Billing & Energy Mgmt.
Payments
Property Management
Vendor Ecosystem
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 7
Acquired* Not all inclusive
SEG-Landscape: Commercial/Corporate Real Estate Technology*
Data/Info. Services
Facilities Mgmt.
Investment Mgmt.
IWMS
Facilities Design/AEC
Construction
Vendor Ecosystem
Capital Planning
Vertical Providers
Space Mgmt.Lease
Administration
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 8
Acquired* Not all inclusive
SEG-Landscape: “For Sale” Real Estate Technology*
Property Search/ Lead Gen
Home Services/ Lead Gen
Broker CRM
Vendor Ecosystem
Broker Marketing
MLSResidential
Construction
Property Search (Vacation Rentals)
Mortgage Orig./ Finance
Other
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 9
Acquired* Not all inclusive
SEG-Landscape: Sector Public/Private Capital
Pu
bli
c Ca
pit
alP
riva
te C
apit
al
Multi-Family Commercial/Corporate “For Sale”
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 10
BRIEF MARKET UPDATE – PUBLIC MARKETS & M&A
Public Companies: Real Estate Technology
Operating Performance and Market Valuation
* Data as of October 10, 2016
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 12
Company Ticker CategoryEnterprise
Value (mm)LTM Rev.
(mm)LTM EBITDA
(mm)LTM Rev Growth
LTM Gross Margin
LTM EBITDA Margin
EV / Rev
EV/ EBITDA
Angie's List, Inc. ANGI Home Service Lead Gen $537.3 $340.2 $33.1 1.7% 73.5% 9.7% 1.6x 16.2xAppFolio, Inc. APPF Property Management $617.1 $90.1 -$10.7 48.9% 55.1% (11.9%) 6.8x -AVEVA Group plc. AVV Facilities Design / AEC $1,454.2 $249.5 $59.0 -3.5% 92.7% 23.7% 5.8x 24.6xCoreLogic, Inc. CLGX Data/Info Services $4,955.0 $1,731.1 $360.8 18.3% 47.4% 20.8% 2.9x 13.5xCoStar Group Inc. CSGP Data/Info Services $6,769.2 $788.7 $170.9 23.5% 76.7% 21.7% 8.6x 39.6xEllie Mae, Inc. ELLI Mortgage Org./Finance $3,318.8 $297.5 $53.7 42.0% 66.2% 18.1% 11.2x 61.8xNemetschek AG XTRA:NEM Facilities Design / AEC $2,498.9 $348.2 $73.9 24.0% 52.7% 21.2% 7.2x 33.4xRealPage, Inc. RP Property Management $2,031.1 $514.4 $68.4 18.5% 57.4% 13.3% 3.9x 29.7xZillow Group, Inc. Z Property Search/ Lead Gen $5,736.6 $740.5 $7.2 54.4% 91.2% 1.0% 7.7x - Median: $2,498.9 $348.2 $59.0 23.5% 66.2% 18.1% 6.8x 29.7x Average: $3,102.0 $566.7 $90.7 25.3% 68.1% 13.1% 6.2x 31.3x High: $6,769.2 $1,731.1 $360.8 54.4% 92.7% 23.7% 11.2x 61.8x Low: $537.3 $90.1 -$10.7 -3.5% 47.4% (11.9%) 1.6x 13.5x
* Financial data sourced by Capital IQ
42289
42297
42305
42313
42321
42331
42340
42348
42356
42367
42376
42384
42395
42403
42411
42422
42430
42438
42446
42457
42465
42473
42481
42489
42499
42507
42515
42524
42534
42542
42550
42559
42569
42577
42585
42593
42601
42611
42620
42628
42636
42646
0.00x
2.00x
4.00x
6.00x
8.00x
10.00x
12.00x
14.00xAppFolio, Inc. (NasdaqGM:APPF) - TEV/Total RevenuesCoStar Group Inc. (NasdaqGS:CSGP) - TEV/Total RevenuesEllie Mae, Inc. (NYSE:ELLI) - TEV/Total RevenuesRealPage, Inc. (NasdaqGS:RP) - TEV/Total Revenues
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 13
Oct-15
Oct-15
Oct-15
Nov-15
Nov-15
Nov-15
Dec-15
Dec-15
Dec-15
Dec-15
Jan-16
Jan-16
Jan-16
Feb-16
Feb-16
Feb-16
Mar-1
6
Mar
-16
Mar-1
6
Mar-
16
Apr-16
Apr-16
Apr-16
Apr-16
May-1
6
May-1
6
May-1
6
Jun-1
6
Jun-1
6
Jun-1
6
Jun-1
6Ju
l-16
Jul-1
6
Jul-1
6
Aug-16
Aug-16
Aug-16
Aug-16
Sep-1
6
Sep-1
6
Sep-1
6
Oct-16
-1.00b
0.00b
1.00b
2.00b
3.00b
4.00b
5.00b
6.00b
7.00b
8.00b
AppFolio, Inc. (NasdaqGM:APPF) - Market CapitalizationCoStar Group Inc. (NasdaqGS:CSGP) - Market CapitalizationEllie Mae, Inc. (NYSE:ELLI) - Market CapitalizationRealPage, Inc. (NasdaqGS:RP) - Market Capitalization
Market Capitalization
EV/Revenue
Public Companies: Real Estate SaaS Providers
* Financial data sourced by Capital IQ
Top 10 Real Estate Technology M&A by Enterprise Value (EV)
*Data set last three years
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 14
Date Buyer SellerEnterprise Value
($mm) EV / Rev EV / EBITDA Category Business Description12/04/15 Expedia, Inc. HomeAway, Inc. $3,347.8 6.2x 29.2x Property Search HomeAway, Inc. operates an online vacation rental property marketplace that enables property owners
and managers to market properties for rental to vacation travelers.
07/28/14 Zillow, Inc. (NasdaqGS:Z)
Trulia, Inc. (NYSE:TRLA)
$3,090.5 14.8x - Property Search Trulia, Inc. provides tools to research homes and neighborhoods for consumers through Web and mobile applications. The company, through its tools, also enables real estate professionals to market their listings.
11/14/14 REA Group Limited
Move, Inc $963.2 4.0x 121.3x Property Search Move, Inc. operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America.
04/28/16 Oracle Corporation
Textura Corporation
$600.0 6.5x - Commercial Construction
Textura Corporation provides collaboration and productivity solutions for the construction industry.
03/03/14 CoStar Group Inc. (NasdaqGS:CSGP)
Apartments.com, L.L.C.
$585.0 6.8x 22.9x Property Search Apartments.com, L.L.C. provides apartment Internet listing subscription services. It represents various rental units from managed properties, newspaper classifieds, and for-rent-by-owner properties.
12/17/15 CoreLogic, Inc. (NYSE:CLGX)
FNC, Inc. $475.0 - - Mortgage Orig. / Finance
FNC, Inc. develops real estate collateral information technology.
09/22/14 Symphony Technology Group
McGraw-Hill Construction Information Group
$320.0 1.9x - Commercial Construction
McGraw-Hill Construction Information Group provides essential data, news, insights, and intelligence to better inform construction professionals’ decisions and strengthen their market position.
08/14/14 Realogy Group LLC
ZipRealty, Inc. $157.3 2.3x - Broker CRM / Marketing
ZipRealty, Inc. operates as an online technology-enabled real estate brokerage company in the United States.
07/20/15 Roper Technologies, Inc. (NYSE:ROP)
On Center Software, Inc.
$157.0 - - Commercial Construction
On Center Software, Inc. develops and delivers construction automation management solutions for companies in the United States and internationally.
07/22/15 Zillow Group, Inc. (NasdaqGS:ZG)
DotLoop, LLC $108.0 7.2x - Broker CRM / Marketing
DotLoop, LLC provides online collaborative solutions that enable real estate agents, brokers, and clients to complete the transaction process from offer to close in one place.
* Financial data sourced by Capital IQ
Top 10 Real Estate Technology M&A by EV/Revenue Multiple
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 15
* Data set last three years
Date Buyer SellerEnterprise Value
($mm) EV / Rev EV / EBITDA Category Business Description01/07/16 Quikr India
Private LimitedmaxHeap Technologies Private Limited
$200.0 27.4x - Property Search maxHeap Technologies Private Limited offers home seekers, sellers, and real estate professionals with an online real estate ecosystem.
07/28/14 Zillow, Inc. (NasdaqGS:Z)
Trulia, Inc. (NYSE:TRLA)
$3,090.5 14.8x - Property Search Trulia, Inc. provides tools to research homes and neighborhoods for consumers through Web and mobile applications. The company, through its tools, also enables real estate professionals to market their listings.
07/22/15 Zillow Group, Inc. (NasdaqGS:ZG)
DotLoop, LLC $108.0 7.2x - Broker CRM / Marketing
DotLoop, LLC provides online collaborative solutions that enable real estate agents, brokers, and clients to complete the transaction process from offer to close in one place.
09/05/16 Mitula Group Limited (ASX:MUA)
Dot Property Pte. Ltd.
$8.9 6.9x - Property Search Dot Property Pte. Ltd. owns and operates property portal Websites and an offline media in South East Asia.
03/03/14 CoStar Group Inc. (NasdaqGS:CSGP)
Apartments.com, L.L.C.
$585.0 6.8x 22.9x Property Search Apartments.com, L.L.C. provides apartment Internet listing subscription services. It represents various rental units from managed properties, newspaper classifieds, and for-rent-by-owner properties.
04/28/16 Oracle Corporation
Textura Corporation
$600.0 6.5x - Commercial Construction
Textura Corporation provides collaboration and productivity solutions for the construction industry.
12/04/15 Expedia, Inc. HomeAway, Inc. $3,347.8 6.2x 29.2x Property Search HomeAway, Inc. operates an online vacation rental property marketplace that enables property owners and managers to market properties for rental to vacation travelers.
04/19/16 Zoopla Property Group Plc (LSE:ZPLA)
The Property Software Group
$108.0 4.7x 14.7x Property Management
The Property Software Group develops and supplies software and media solutions to the property industry.
10/03/14 Nemetschek AG (XTRA:NEM)
Public Company $100.0 4.5x - Facilities Design / AEC
Bluebeam Software, Inc. develops PDF solutions for digitizing project communications.
06/02/15 RealPage, Inc. (NasdaqGS:RP)
Indatus ICIM Corp., Select Assets
$49.0 4.3x 20.4x Property Management
Indatus ICIM Corp. provides a suite of cloud-based, smart answer automation and routing solutions that handle maintenance calls for over 11,000 apartment communities.
* SEG served as exclusive advisor to Indatus in its sale to RealPage
* Financial data sourced by Capital IQ
Real Estate Technology M&A Activity
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 16
1Q122Q12
3Q124Q12
1Q132Q13
3Q134Q13
1Q142Q14
3Q144Q14
1Q152Q15
3Q154Q15
1Q162Q16
3Q16
6
1817
1312
9
1517
11
2321
1718
1718
22
26
18
27
2012 2013 2014 2015 2016 Projec-tion
4251
72 75
95
7.0%5.6%
5.6%
16.9%
7.0%
9.9%1.4%
21.1%
12.7%
1.4%
11.3%
Property Management
Data/Information Services
Investment Management
IWMS & Facilities Man-agement
Facilities Design
Commercial Construction
Residential Construction
Property Search
Home Services Search
Broker CRM/Marketing
Mortgage Orig. / Finance
Other
Annual M&A Volume
Quarterly M&A Volume
YTD M&A Volume By Category
* Financial data sourced by Capital IQ
LTM Real Estate Technology M&A Transactions
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 17
Date Buyer SellerEnterprise
Value EV / Revenues EV / EBITDA09/28/16 OOO KEH eCommerce Domofond LLC - - -09/23/16 Immofacile SA Poliris SAS - - -09/22/16 Accruent, LLC VERISAE, INC. - - -09/15/16 Accruent, LLC Business Integration Group, Inc. - - -09/07/16 Common Living Inc. Skylight, Inc. - - -09/07/16 Sopra Steria Group (ENXTPA:SOP) Active3D SAS - - -09/06/16 First American Financial Corporation (NYSE:FAF) RedVision Systems, Inc. - - -09/06/16 International Document Services, Inc. Encomia, LLC - - -09/05/16 Mitula Group Limited (ASX:MUA) Dot Property Pte. Ltd. $8.9 6.9x -08/30/16 NEXTracker Inc. BrightBox Technologies, Inc. - - -08/29/16 Bellrock Property & Facilities Management Limited Concerto Support Services Limited - - -08/24/16 Mercury Network, LLC Platinum Data Solutions, Inc. - - -08/03/16 Kvartal OOO iDom - - -08/03/16 Renovate America, Inc. CakeSystems, Inc. - - -08/02/16 Zillow Group, Inc. (NasdaqGS:ZG) Bridge Interactive Group, LLC - - -08/01/16 Central Innovation Holdings Pty Limited Cadimage Group Limited - - -07/31/16 Jobookit Holdings Ltd. (TASE:JBKT) Homeez Ltd. - - -07/26/16 Fidelity National Financial, Inc. (NYSE:FNF) Commissions Inc. - - -07/20/16 Deltek, Inc. Union Square Software Ltd. - - -07/14/16 Matterport, Inc. Inspired Labs Ltd - - -07/07/16 Acuity Brands, Inc. (NYSE:AYI) DGlogik, Inc. - - -07/06/16 Sarouty.ma SeleKtimmo Moroccan real estate portal - - -07/06/16 UNIFI Labs, Inc. IGS BIM Solutions - - -07/06/16 Luzerner Kantonalbank AG (SWX:LUKN) Bricks & Bytes AG - - -07/06/16 Immobiliare.it S.p.A. Enalquiler Rental Online, S.L. - - -07/01/16 Total Specific Solutions (TSS) B.V. NCCW Holding B.V. - - -06/23/16 Real Capital Analytics, Inc. SiiLA Investors, LLC - - -06/20/16 MassVenture Inc. Equity Brick, LLC - - -06/09/16 Scaleworks Associates FollowUp.cc - - -06/09/16 Immobilien Scout GmbH my-next-home.de And immodirekt.at - - -06/08/16 GALIAN SARL Consortium des Professionnels de l'Immobilier - - -06/03/16 MRI Software LLC Integratec Services LLC - - -06/01/16 Condeco Software Inc. Interactive Ideas LLC - - -05/31/16 Pragma Capital Sarl PROPRIETES-PRIVEES - - -05/20/16 Dodge Data & Analytics, Inc. Adenium Systems, Inc. - - -05/18/16 Genstar Capital, LLC Accruent, LLC - - -05/17/16 RealPage, Inc. (NasdaqGS:RP) Portfolio Asset Management $4.8 - -05/04/16 CoStar UK Limited THOMAS DAILY GmbH - - -04/28/16 Goyo Intex Co., Ltd. (JASDAQ:7519) ReCI Inc $1.2 - -04/27/16 TripAdvisor Inc. (NasdaqGS:TRIP) HouseTrip SA - - -
* Financial data sourced by Capital IQ
LTM Real Estate Technology M&A Transactions
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 18
Date Buyer SellerEnterprise
Value EV / Revenues EV / EBITDA04/22/16 Brandspots We Are Pop Up $0.2 - -04/19/16 Placester, Inc. The WebMart Network Pty Limited - - -04/19/16 Zoopla Property Group Plc (LSE:ZPLA) The Property Software Group $108.0 4.7x 14.7x04/14/16 Zuuse Pty Ltd Mercury Computer Systems (Aust) Pty Ltd. - - -04/14/16 BuildingIQ, Inc. (ASX:BIQ) NorthWrite Incorporated, Certain Assets $3.0 - -03/23/16 Dodge Data & Analytics, Inc. Ingenium Technologies Corporation - - -03/18/16 The International MLS Wasatch Digital Media LLC - - -03/17/16 Aconex Limited (ASX:ACX) CONJECT Holding GmbH $73.6 2.7x 81.3x03/17/16 NEXT Co., Ltd. (TSE:2120) Zumper, Inc. - - -03/04/16 Placester, Inc. HomeFinder.com, LLC - - -03/01/16 Mitula Group Limited (ASX:MUA) Nuroa Internet S.L. $3.4 - -02/26/16 Global ICT (Thailand) Co., Ltd. Demeter ICT Company Limited $0.2 - -02/24/16 Sopra Banking Software SA Cassiopae SAS - - -02/19/16 essensys Ltd Hubcreate Ltd. - - -02/15/16 ShowingTime.com, Inc. RealEstate Business Intelligence, LLC - - -02/11/16 News Corp Australia Pty Limited DIAKRIT International Ltd. - - -02/08/16 SketchUp Sefaira Limited - - -02/03/16 ServiceChannel, Inc. Big Sky Technologies, Inc. - - -02/02/16 Biotricity Inc. (OTCBB:BTCY) MetaSolutions, Inc. - - -02/02/16 Yardi Systems, Inc. Immobilien-Management-Systeme GmbH - - -02/02/16 Zillow Group, Inc. (NasdaqGS:ZG) Naked Apartments, Inc. $13.0 - -02/01/16 Addnode Group AB (publ) (OM:ANOD B) 5D Systemkonsult AB - - -01/31/16 Zumper, Inc. PadMapper Inc. - - -01/28/16 RentPost, Inc. iRealtyManager - - -01/25/16 - CurbCall Inc. - - -01/20/16 Onboard Informatics LLC AddressReport, Inc. - - -01/19/16 OpenTech Alliance, Inc. Storage Treasures, Inc. - - -01/18/16 Sprengnetter GmbH R&S Software GmbH - - -01/11/16 Alma Mediapartners Oy Raksa ja KotiKauppa Oy - - -01/11/16 Topcon Positioning Systems, Inc. Viasys VDC Oy - - -01/07/16 Quikr India Private Limited maxHeap Technologies Private Limited $200.0 27.4x -12/21/15 ShoreTel, Inc. (NasdaqGS:SHOR) Corvisa Services, LLC $8.5 - -12/18/15 Nemetschek AG (XTRA:NEM) Solibri, Inc. $48.8 - -12/17/15 CoreLogic, Inc. (NYSE:CLGX) FNC, Inc. $475.0 - -12/16/15 Robert Bosch GmbH RE'FLEKT GMBH - - -12/16/15 ERM Power Limited (ASX:EPW) Greensense Pty Ltd $3.8 - -12/14/15 Chronos Solutions, LLC Cogent Road, Inc. - - -12/09/15 Moody's Corporation (NYSE:MCO) BlackBox Logic LLC - - -12/04/15 Expedia, Inc. HomeAway, Inc. $3,347.8 6.2x 29.2x11/20/15 Daikin Applied Americas Inc. Riptide IO Inc. - - -
* Financial data sourced by Capital IQ
LTM Real Estate Technology M&A Transactions
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 19
Date Buyer SellerEnterprise
Value EV / Revenues EV / EBITDA11/17/15 On-Site.com, Inc. Ellipse Communications, Inc. - - -
11/12/15 Centrica Nederland B.V. Panoramic Power Ltd. $60.0 - -
11/10/15 VivaReal Inc. Sua House S/A - - -
11/06/15 DP Logiciels SAS Entities SAS - - -
11/02/15 JDM Technology Group LEVESYS Pty Ltd - - -
10/22/15 Duke Energy Corporation (NYSE:DUK) Phoenix Energy Technologies, Inc. - - -
10/15/15 Aareon Nederland B.V. Square DMS Groep B.V. - - -
10/15/15 Salvia Développement SAS A.S.C.-Immo NV And ID BAT - - -
10/14/15 Ellie Mae, Inc. (NYSE:ELLI) Mortgage Returns LLC - - -
* Financial data sourced by Capital IQ
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 20
Selected SEG Real Estate Transactions
Software Equity Groups’ Client Dean Evans & Associates, has received an investment from JMI Equity
SAN DIEGO, CA –April 15, 2014. Software Equity Group, LLC (SEG) announced today its client, Dean Evans & Associates, Inc. (dba Event Management Systems) the leading provider of facility scheduling and event management software, has received a strategic growth equity investment from JMI Equity, a leading growth equity firm focused on investing in leading software and technology-enabled services companies.
Founded in 1986 and headquartered in Centennial Colorado, Dean Evans & Associates (DEA) provides a full suite of meeting and event scheduling, resource management, academic scheduling, shared workspace management (office “hoteling”), web calendaring and online registration/survey solutions. More than 4,000 organizations in over 75 countries rely on DEA’s Event Management System (EMS) software, including many Fortune 100 companies and other leading corporations, higher education institutions, law firms, conference centers, religious organizations, hospitals, cultural venues and sports facilities.
“For over 25 years, our team has been focused on providing our customers with the best in facility management software, along with the highest levels of customer service,” said Dean Evans, CEO and founder of DEA. ”EMS is a premier brand with a strong competitive advantage, offering the most comprehensive package of services on the market. With JMI’s expertise in growing enterprise software companies, along with its experience in higher education, we feel better than ever about our ability to continue to innovate and grow our offering.”
“We share the DEA team’s vision for the future and look forward to supporting the company in achieving its growth objectives,” said Brian Hersman, General Partner at JMI Equity. ”DEA’s opportunity fits well with JMI’s strategy of bringing expertise and resources to build on a foundation of strong market and product leadership.”
“I have been approached over the years by numerous M&A advisors. From the initial introduction, to the closing, SEG was clearly more knowledgeable about the M&A process, the market that I serve and the value of my company. SEG quickly and efficiently took my company to market finding a buyer that exceeded my expectations. SEG’s experience and confidence was apparent throughout the entire process.”
Dean Evans, Founder & Former CEODean Evans and Associates
Copyright © 2016 by SEG Capital Advisors, LLC. All Rights Reserved 21
Selected SEG Real Estate Transactions
Software Equity Group'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.”
Financial Summary
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.
“My business partner and I knew we were in a good window of opportunity to sell our company. We had grown the business together for 25 years and the industry tail winds were making valuations attractive. We were getting inundated with calls from PE firms and really did not know where to turn first to start investigating exit options. We had made some inquiries with the larger M&A firms but we were not impressed with what we were hearing or with the arrogance they portrayed on the initial call. We were given Software Equity’s name by a fellow industry vendor who had used them previously. Our initial call was with Allen Cinzori. From the beginning, you could immediately tell that Allen really understood the process and cared about his clients. After a few more calls with Allen and checking with some past SEG clients, we made the decision to go with SEG. Allen, Brad Weekes and the SEG staff worked tirelessly with us to build a compelling story around our company. They brought interested parties, both strategic and private equity, to the table. They were always honest and worked with integrity. SEG attracted multiple bidders for our company that increased the sales price. In the end, I feel like we ended up with the absolute best deal possible. I have no regrets about using SEG for the sale of our company. If I am lucky enough to be in the same position again, they will be the only investment banking firm I will call.
David Durik, CEOICIM Corporation (d/b/a Indatus)
SEG Contact Information
Kris Beible(858) 509-2800
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Software Equity Group (SEG) is a boutique investment bank and M&A advisory serving emerging and middle market software companies. For more than twenty years, SEG has worked alongside its software industry clients to drive extraordinary outcomes for the client's shareholders, employees and customers. Over this time period, SEG has managed hundreds of sell-side M&A transactions, representing billions of dollars of aggregate transaction value. SEG's unwavering commitment to the software industry equates to unmatched expertise across software industry product categories, delivery models, technology and end market verticals; and unrivaled access to key decision makers among strategic and private equity buyers.
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