On the heels of purchasing Axiometrics in January and Rainmaker’s LRO in February, Richardson, Texas-based RealPage has acquired another multifamily company. RealPage snapped up American Utilities Management, the Chicago-based multifamily utilities and energy management solutions platform, for approximately $70M.
The acquisition will allow for more scale to resident billing operations, RealPage Chairman and CEO Steve Winn said. RealPage's buying spree aims to create the largest and most accurate database of utility consumption and cost data in the multifamily industry.
“With the acquisition, we service more than 2.5 million rental units, which, at that scale, allows us to focus on innovation and developing a quality product,” RealPage Vice President of Investor Relations Rhett Butler said.
RealPage also hinted that this acquisition is not the end of its growth aspirations.
“We want to be a $1B revenue company with 30% adjusted EBITDA (earnings before interest, tax, depreciation and amortization) margins by 2020. To achieve that, we have to remain very focused on innovation — whether organic or inorganic — capital allocation discipline and expense efficiencies,” Butler said.
RealPage’s resident utility management platform provides billing, invoice processing and payment services. AUM also has an energy management platform that allows monitoring of energy consumption.
AUM staff joined RealPage to prevent disruption in service, and AUM President and CEO Michael Miller said RealPage intends to expand processing volume through AUM’s Chicago service center.
The acquisition is expected to be complete by the end of 2018. In 2016, AUM earned about $30M in revenue. RealPage expects this acquisition to contribute $15M in revenue and an adjusted EBITDA range of $2M or $3M in 2017.
RealPage paid $75M for Axiometrics and $300M for LRO.
AUM’s exclusive financial adviser was Houlihan Lokey. RealPage serves more than 11,200 clients from offices in North America, Europe and Asia.
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