Significantly Expands RealPage Payments
Platform
RealPage, Inc. (NASDAQ:RP), a leading provider of software and
data analytics to the real estate industry, today announced its
agreement to acquire ClickPay, a comprehensive electronic payment
platform servicing 2.3 million units across the multifamily, HOA,
condominium and co-op segments of real estate. ClickPay
significantly expands RealPage’s footprint into the HOA
owner-occupied segment of real estate, broadens the company’s
presence in the New York metropolitan market and solidifies the
integration of its front-end leasing platform into third-party
property management systems.
Highlights
- Adds nearly $1.0 billion to the
company’s total addressable market. The HOA market is estimated to
contain over 16 million units, and RealPage estimates that current
and future solutions applicable to the market aggregate to a total
opportunity of approximately $60 per unit per year. Including the
HOA market, the holistic RealPage platform is expected to serve
multiple segments of real estate, from rentals to owner occupied
units, totaling over 62 million units. Total current and future
applicable solutions for those units represent nearly $205 per unit
per year, for a total addressable market of over $12.7
billion.
- Strengthens the company’s
consumer-centric, front-end leasing platform. ClickPay, in concert
with the recent acquisition of On-Site, combines functionality to
attract, convert and retain renters integrated with popular
third-party property management systems. The front end platform
includes Property Websites, Contact Center, Online Leasing, CRM,
Screening, Resident Portal and Payments.
- Creates one of the largest payment
processing platforms for real estate assets with over $55 billion
of annual run-rate transaction volume.
- Expands RealPage’s presence in the New
York metropolitan market, complementing its recent acquisition of
On-Site, the largest provider of tenant screening services in New
York. ClickPay’s client base also represents a significant
cross-sell opportunity for the RealPage platform.
- Expands RealPage functionality to
include lockbox and online banking capabilities, eliminating
time-consuming and inefficient manual check processing.
Steve Winn, Chairman and CEO of RealPage
“Expanding our payments solution to include ClickPay has the
potential to further accelerate one of the fastest growing areas of
our platform. According to data from the U.S. Census Bureau
American Housing Survey, over $525 billion of rent is collected
annually. Only a fraction of that volume is processed
electronically, and we estimate that the vast majority of the U.S.
still pays rent with a paper check. In addition, according to
industry sources, owner occupied units in the HOA segment are
spending approximately $60 billion per year in fees. We believe our
scale gives RealPage a strategic position to drive deeper client
adoption across most real estate categories for payment solutions
as well as other solutions that reduce costs and improve
efficiency. In addition, I believe ClickPay and our recent
acquisition of On-Site together unlock a significant opportunity to
attract, convert and retain renters for clients utilizing property
management systems outside of the RealPage ecosystem.”
Matt Davis, Senior Vice President of RealPage Financial
Services
“We intend to incorporate ClickPay’s capabilities into the
RealPage payment processing platform enabling clients to eliminate
site-level check handling. We anticipate ClickPay will remain a
standalone platform supporting most third-party property management
solutions, but will also begin integrating RealPage’s front office
capabilities tailored for rental real estate. Accordingly, ClickPay
operations in New Jersey and New York will be expanded to further
support rental clients and to further penetrate the HOA segment. We
expect that the combined transaction volume generated through the
RealPage and ClickPay platforms will provide the scale necessary to
drive a more efficient and cost effective solution for our
clients.”
Ernest Muller, Chairman of ClickPay
“Our clients need assistance automating the entire resident life
cycle. By joining forces with RealPage, we will be able to grow our
best-in-class payment platform and instantly add a suite of
resident-facing solutions including online service requests, online
leasing, online concierge services, package tracking, utility
billing, insurance, and lead generation tools.”
Tom Kiernan, CEO of ClickPay
“Our entrepreneurial spirit, flexibility, and strong client
relationships have been central to our success. RealPage is
committed to ensuring we maintain our DNA in the way we execute and
deliver value for our clients.”
Financial and Operational
Highlights
The acquisition purchase price of $218.5 million is composed of
$76.3 million in shares of RealPage common stock and $142.2 million
in cash. The acquisition price is subject to working capital
adjustments and a holdback for potential indemnification claims.
The cash portion of the transaction was financed from the company’s
existing credit facility. RealPage completed the purchase of
approximately 88% of the interests in ClickPay at the time of the
agreement and expects to finalize the purchase of the remaining
interests within the next six months. For the year ended December
31, 2017, ClickPay possessed revenue of over $22 million with
negligible Adjusted EBITDA contribution. RealPage estimates that
ClickPay will contribute revenue of $23 million for the remainder
of 2018, representing 2018 revenue growth of approximately 45%.
ClickPay is expected to be immaterial to RealPage’s 2018 Adjusted
EBITDA. However, the company expects to achieve revenue and expense
synergies that will be accretive to its long-term revenue growth
and Adjusted EBITDA margin expansion objectives.
Ernest Muller and Tom Kiernan, Chairman and CEO of ClickPay,
respectively, will remain with the business in addition to
approximately 100 employees. ClickPay is based in New York
City.
About RealPage
RealPage is a leading global provider of software and data
analytics to the real estate industry. Clients use its platform to
improve operating performance and increase capital returns. Founded
in 1998 and headquartered in Richardson, Texas, RealPage currently
serves over 12,400 clients worldwide from offices in North America,
Europe and Asia. For more information about RealPage, please visit
www.realpage.com.
About ClickPay
As a leading platform for automating real estate receivables,
ClickPay accepts most payment methods, including checks, e-checks
(ACH), credit and debit cards. ClickPay offers integrated payment
services to increase operational efficiencies and enable profitable
growth. The ClickPay Portal provides property owners and managers
with a customizable, electronic solution to bill and collect
payments to increase operational efficiencies and increase resident
satisfaction. To learn more, go to www.clickpay.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains “forward-looking” statements
relating to the expected financial and other benefits of the
ClickPay acquisition to RealPage and its current and future
customers, including expected market size opportunity, expected
benefits of entering into the HOA market, expanding the company’s
presence in the New York metropolitan market, and integration of
RealPage’s front-end platform into third-party property management
systems, acceleration of one of the fastest growth areas of our
platform, the combined benefits of the ClickPay acquisition and the
previously announced On-Site acquisition, our plans for the
integration and expansion of ClickPay operations, expectations
regarding timing of the completion of the remaining portions of the
ClickPay transaction, ClickPay’s contribution to RealPage’s 2018
revenue and Adjusted EBITDA, and the achievement of revenue and
expense synergies that will be accretive to RealPage’s long-term
revenue growth and Adjusted EBITDA margin expansion objectives, and
expectations regarding certain employees remaining with the
business after the acquisition. These forward-looking statements
are based on management's beliefs and assumptions and on
information currently available to management. Forward-looking
statements include all statements that are not historical facts and
may be identified by terms such as “expects,” “believes,” “plans,”
or similar expressions and the negatives of those terms. Those
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Additional factors that could cause
or contribute to such differences include, but are not limited to,
the following: (a) the possibility that general economic
conditions, including leasing velocity or uncertainty, could cause
information technology spending, particularly in the rental housing
industry, to be reduced or purchasing decisions to be delayed; (b)
an increase in insurance claims; (c) an increase in customer
cancellations; (d) the inability to increase sales to existing
customers and to attract new customers; (e) RealPage’s failure to
integrate ClickPay or other acquired businesses and any future
acquisitions successfully or to achieve expected synergies; (f) the
timing and success of new product introductions by RealPage or its
competitors (including products acquired through ClickPay or
through other acquisitions); (g) changes in RealPage’s pricing
policies or those of its competitors; (h) legal or regulatory
proceedings; (i) the inability to achieve revenue growth or to
enable margin expansion; and (j) such other risks and uncertainties
described more fully in documents filed with or furnished to the
Securities and Exchange Commission (“SEC”) by RealPage, including
its Annual Report on Form 10-K filed with the SEC on March 1, 2018.
All information provided in this release is as of the date hereof
and RealPage undertakes no duty to update this information except
as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180420005112/en/
RealPageRhett Butler, 972-820-3773Investor
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