The ASX-listed property technology solutions company The PropTech Group has today announced that it has agreed to acquire Eagle Software, a provider of CRM, website development and marketing solutions operating in Australia and New Zealand.
According to a press release, The PropTech Group will be paying A$7.5 million upfront in cash and scrip with an additional consideration of up to A$7.5 million earn-out based on performance up to May 2022 also tied into the deal.
For its money, the Sydney based company will be getting a leading provider of tech solutions for independent and boutique real estate agencies in both Australia and New Zealand with some 800 clients. The acquisition brings The PropTech Group's market share of the Australian and New Zealand real estate CRM market from around 31% to an estimated 38% with Eagle Software also predicted to contribute A$3.3 million in revenue and A$0.6 million in EBITDA over the course of FY21 (a pro forma increase of 30% and 33% respectively).
Speaking about The PropTech Group's latest acquisition, Non-Executive Chairman Simon Baker said:
"The acquisition of Eagle Software helps consolidate the PropTech Group’s position as the leading provider of real estate CRM solutions for Australian and New Zealand real estate agents."
"It also provides a stronger platform for the PropTech Group to provide other innovative PropTech solutions to the market. We look forward to welcoming the Eagle Software team to the Group and identifying further acquisitions to expand the PropTech Group’s presence in the Australian, New Zealand and UK PropTech markets."
In order to fund the purchase, the firm has announced an equity raising of up to A$17.5 million split into an underwritten placement offer of A$7.1 million and a A$10.4 million non-renounceable rights issue.
Fund managers are being targeted with shares at 72 cents, a price that represents a 13.8% discount on the previous close.
Having changed its name from The Real Estate Investar Group, The PropTech Group re-lists on the ASX with a mission "to own, operate, and invest in high-quality property technology businesses that primarily focus on the Australian, New Zealand, and United Kingdom residential and commercial real estate markets"
Shares in the newly re-listed company climb 20% in a month.
The PropTech Group signs 2 year CRM deal with leading Australian real estate franchise The Ray White Group.
The PropTech Group agrees to acquire real estate website development company Website Blue for a reported $1.5 million.
The PropTech Group signs a deal with leading Australasian real estate firm Harcourts which sees The PropTech Group's VaultRE become the only endorsed CRM solution across the Harcourts network. The deal also saw The PropTech Group take control of Harcourts' proprietary software platform "HarcourtsOne".
The PropTech Group announces fund raise if up to $17.5 million to fund the acquisition of CRM, website and marketing solution provider Eagle Software.
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