MRI Software, a leading provider of real estate software solutions, has completed its $93.4 million stock acquisition of PropTech Group (ASX:PTG). The acquisition was first announced last year and has since received approval from the Australian Competition and Consumer Commission (ACCC), Foreign Investment Review Board (FIRB), and Federal Court of Australia. The property technology (PropTech) industry in Australia has experienced a significant increase in growth, with an influx of new providers and innovation over the past few years. The acquisition of PTG by MRI will strengthen its MRI Living™ suite of residential sales and property management solutions by automating and simplifying every consumer touchpoint 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, Senior Vice President and Executive Managing Director for MRI Software in Asia Pacific.
The acquisition of PTG complements MRI’s existing solutions and expands its offerings to better meet the needs of agencies and consumers. In a survey conducted by MRI last year, Australian consumers expressed a desire to have one real estate agency for life, and the company is 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 are tailored to their particular environment and have been 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.”
The acquisition will enable both companies to better support their clients and to retain consumers for life. Shareholders will 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.
