MRI Software completes $93 million acquisition of PropTech Group
MRI Software, a global leader in real estate software solutions, announces its $93.4 million stock acquisition of PropTech Group (ASX:PTG) is now complete. The highly anticipated deal, first announced last year, secured approval from the Australian Competition and Consumer Commission (ACCC), Foreign Investment Review Board (FIRB), and Federal Court of Australia earlier this month.
The property technology (PropTech) industry has experienced extraordinary growth in Australia with an influx of new providers and innovation over the last several years. In acquiring PTG, MRI complements and strengthens its MRI Living™ suite of residential sales and property management solutions – automating and simplifying every consumer touch point in a real estate business.
“This acquisition brings together two innovative PropTech companies dedicated to providing the greatest possible value to real estate agencies across Australia and New Zealand. The residential real estate industry is now a step closer to having a holistic operational view of consumers throughout their property life cycle,” said David Bowie (pictured), Senior Vice President and Executive Managing Director for MRI Software in Asia Pacific.
“We’re incredibly proud to have curated such a powerful end-to-end suite of solutions to advance our industry and meet the needs of agencies and consumers alike. In a survey we conducted last year, Australian consumers told us they want one real estate agency for life. We’re committed to helping agencies deliver on that aspiration. With more than 50 years of experience serving the global real estate industry, MRI offers peace of mind for clients who know the solutions we tailor to their particular environment are tried and tested.”
Joe Hanna, CEO of PropTech Group said, “This acquisition is a massive opportunity for PTG clients, who already enjoy the tight integration of our software. Many of MRI’s clients use PTG products like VaultRE or Eagle Software, and likewise, many PTG clients use offerings from MRI such as Box+Dice or PropertyTree. Now, we can innovate together to ensure the focus is exactly where it matters: on our clients.”
MRI’s David Bowie concluded, “We’ve been delighted by feedback from clients and industry leaders so far. They grasp the incremental value brought by having a partner with an open and connected technology ecosystem to underwrite their business growth. Our respective innovations and extraordinary teams will enable us to better support our clients as they strive to retain consumers for life.”
Shareholders are to receive $0.60 per PTG share held, delivering an implied equity value of approximately $93.4 million. Full control of the PropTech Group transfers from PTG shareholders to MRI Software on 22 February 2023. The PropTech Group first traded on the ASX in November 2020 with an indicative enterprise value of $27 million. The acquisition price of $93.4 million is equal to nearly a 250% increase in value in just two years.