Tenant screening company RealPage has purchased Buildium, a property management provider, for $580 million.
Steven Winn
The acquisition, which is one of at least seven RealPage made since the start of 2017, is part of the company’s efforts to target different parts of the real estate market — smaller multifamily, single-family, HOA and Condo associations as well as commercial properties. By the company’s estimations, there are currently more than 50 million such small and medium business (SMB) units in the U.S. Buildium currently manages around two million residential units and serves more than 17,000 customers in more than 50 countries.
“The SMB market segment represents a tremendous growth opportunity for RealPage,” RealPage CEO and Chairman Steven Winn said in a statement. “This is an area where technology is underutilized and currently served by myriad point products. Buildium in concert with RealPage enables us to reach deeper into that market, with a best-in-class platform backed by data science.”
Through the acquisition, RealPage plans to expand and develop Buildium’s current platform and “click-on capabilities” to all of its properties for easier access to functions such as recovery utility fees, payment processing and insurance offerings. The move is part of RealPage’s plan to expand and develop its offerings to reach more tenants and real estate businesses.
Chris Litster
“This is a fantastic time for us to join forces with RealPage,” Buildium CEO Chris Litster said in a statement. “Our shared vision around innovation, simplicity and a commitment to stressing service to our clients will enable them to thrive and grow as well as deliver unmatched value for their investors, owners and residents alike.”
According to HousingWire, the $580 million deal brings the total that RealPage spent on acquiring other companies to more than $1.5 billion. Other companies it acquired in the last two years include software company Rentlytics and utility and energy provider American Utility Management.