[August 02, 2018] |
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RealPage to Acquire LeaseLabs
RealPage,
Inc. (NASDAQ:RP),
a leading provider of software and data analytics to the real estate
industry, today announced its agreement to acquire substantially all of
the assets of LeaseLabs, an award-winning provider of digital marketing
services and software to approximately 800,000 units in the multifamily
housing 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.
LeaseLabs Full Stack Marketing optimizes lead generation through direct
channels, and includes the following functionality:
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Creative content design, marketing analytic services,
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Social media marketing including social media optimization, reputation
management, email marketing & geo-targeting,
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High performance websites,
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Highly customized SEO and SEM services.
LeaseLabs 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 platfor'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.
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 (News - Alert), 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 LeaseLabs
LeaseLabs is an award-winning creative design and marketing analytics
company serving the multifamily housing industry. Clients use their
strategic, creative, and technology services to maximize the impact of
their marketing efforts in all channels. LeaseLabs was founded in 2007,
with headquarters in San Diego, California, and now serves over 260
property management companies throughout the U.S. For more information
about LeaseLabs, visit their website at www.leaselabs.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements relating to the
expected financial and other benefits of the LeaseLabs acquisition to
RealPage and its current and future customers, including expected market
size opportunity, ability to extend the RealPage LeaseLabs platforms
through the combined operations, plans for the integration and expansion
of LeaseLabs operations, LeaseLabs' revenue and growth projections for
2018 and 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. 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 LeaseLabs 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 LeaseLabs 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 (News - Alert)") by RealPage, including its
Annual Report on Form 10-K filed with the SEC on March 1, 2018 and its
Quarterly Report filed with the SEC on May 10, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180802005887/en/
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