RealPage, Inc. today announced its agreement to acquire substantially all of the assets of On-Site Manager, Inc. for approximately $250 million in cash. On-Site is a leasing platform for property managers and renters that assimilates leads from any source and converts them into signed leases for both the multifamily and single-family housing industries. On-Site platform offers solutions similar to RealPage’s screening and document management business, and includes prospect and resident portals, online and on premise leasing, payment processing, and eSignature lease execution solutions. RealPage intends to continue supporting the On-Site platform and expects to combine the best features of its On-Site’s platforms over time. Clients on each platform will benefit from future enhancements with no disruption.

Highlights

• Significantly improves lease management integration into major property management systems such as Yardi®, MRI® and AMSI®.
• Adds real-time consumer credit, demographic and sociographic data for 1.9 million units to the RealPage Data Analytics platform – improving the accuracy of models used to calculate
  depth of demand by price point.
• Extends RealPage’s leasing platform to include a complete library of leasing forms in every state for both multifamily and single-family owners and operators.
• Adds approximately 700,000 new units, opening up significant cross-selling opportunities for other solutions that collectively form the RealPage platform.
• Offers significant opportunity for operating synergies given the scale and overlap of the combined organization.

Steve Winn, CEO of RealPage

“On-Site manages the entire leasing process from lead assimilation, to applicant screening, to the final generation of signed lease documents. The acquisition increases our screening footprint and adds incremental consumer oriented data that will benefit our data analytic solutions. Most importantly, On-Site will significantly improve the integration of our leasing solutions into major property management systems such as Yardi, MRI and AMSI. By combining forces with On-Site, we believe RealPage will possess the best leasing and marketing platform for all multifamily and single family owners and operators, not just those using RealPage property management solutions.”

Bryan Hill, CFO and Treasurer of RealPage

“The combination is a compelling strategic fit and advances us closer to our 2020 financial objective of $1 billion in revenue and 30% adjusted EBITDA margin. We expect to benefit from strong operating synergies driving a purchase price valuation of10 times adjusted EBITDA as we exit 2018. We also believe considerable cross sell opportunities exist as On-Site is heavily penetrated into property management solutions offered by our competitors and we expect to add 700,000new rental units.”

Monte Jones, President of On-Site

“On-Site is considered the gold standard for online leasing, lease document generation and frictionless integration with any property management system. We are excited to become part of a much larger organization with the resources to vastly expand our platform.”

Vista Point Advisors, a San Francisco based boutique investment bank, acted as the exclusive financial advisor to On-Site.

Financial and Operational Highlights

The completion of the acquisition remains subject to certain standard conditions, including the completion of regulatory review. The acquisition purchase price of approximately $250 million in cash is subject to working capital adjustments and post-acquisition indemnification claims. On-Site is expected to generate approximately $50 million in revenue for calendar year 2017; growing 15% compared to 2016. On-Site is expected to generate $9 million in adjusted EBITDA for calendar year 2017. Integration work is expected to be completed in 2018 and RealPage expects to achieve incremental revenue and expense synergies that will be accretive to its long-term revenue growth and Adjusted EBITDA margin expansion objectives.