MRI Software has completed its $93.4 million stock acquisition of PropTech Group.
The deal, which was announced last year, was approved by the Australian Competition and Consumer Commission (ACCC), Foreign Investment Review Board (FIRB) and Federal Court of Australia earlier this month.
MRI Software is a global leader in real estate software solutions, while PTG is a property technology firm that offers integrated real estate software solutions to clients in Australia and New Zealand.
The acquisition complements and strengthens MRI’s 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,” David Bowie, Senior Vice President and Executive Managing Director for MRI Software in Asia Pacific, said.
“The residential real estate industry is now a step closer to having a holistic operational view of consumers throughout their property life cycle.”
The property technology (PropTech) industry in Australia has experienced extraordinary growth with an influx of new providers and innovation over the past few years.
In acquiring PTG, MRI is well-positioned to meet growing consumer expectations for one agency to handle their property needs for life.
PropTech Group CEO Joe Hanna said the acquisition was a “massive opportunity” for PTG clients who already enjoyed the tight integration of its 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,” he said.
“Now, we can innovate together to ensure the focus is exactly where it matters: on our clients.”
Mr Bowie said Australian consumers wanted one real estate agency for life.
“We’re committed to helping agencies deliver on that aspiration,” he said.
“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.”
MRI’s acquisition of PTG was completed after securing a near-unanimous vote by shareholders.
The binding Scheme Implementation Deed was approved by the Federal Court of Australia and other regulatory bodies earlier in February. The quotation of PTG shares on the Australian Stock Exchange (ASX) was suspended after close of trading on 13 February 2023.
Shareholders received $0.60 per PTG share held by 7pm on February 15, delivering an implied equity value of about $93.4 million.
The PropTech Group first traded as PTG on the ASX in November 2020, with an indicative enterprise value of $27 million outlined in its prospectus, equating to an almost 250 per cent increase in value in just two years.
“We’ve been delighted by feedback from clients and industry leaders so far,” Mr Bowie said.
“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.”
Agency professionals are advised to continue working with their respective PTG or MRI contacts, and/or reach out to MRI for information about any of its newly enhanced suite of residential agency PropTech solutions for marketing, sales, property management and finance operations, now within the MRI group of companies.
