Build apartment data giant with acquisition of Axiometrics

RealPage, a provider of software and data analytics to the real estate industry, is growing its operation and seeking to create an apartment data giant with a pair of deals.

RealPage announced Wednesday that it agreed to acquire “substantially all of the assets” of Axiometrics, a provider of apartment market data, for approximately $75 million.

RealPage said that upon completion of the deal, Axiometrics will be folded into MPF Research, a division of RealPage.

Additionally, RealPage announced that it entered into a “long-term” deal with Real Capital Analytics, a provider of multifamily sales transaction data and analytics.

The company said it expects the deals to create the “most-referenced apartment data analytics solution” in the country.

“Combining data from Axiometrics, MPF Research and RCA with the data analytics power of RealPage, which is based on tens of millions of real time lease transactions, will create a unique market intelligence platform,” RealPage said.

RealPage also said that the deals will “significantly increase transparency of transactions in the $150 billion market for multifamily property sales transactions by providing the most accurate market fundamentals, forecasts and asset-level granularity.”

The Axiometrics deal is not yet completed. According to RealPage, the deal is still subject to “certain standard conditions,” and is expected to close in February of this year.

Per data provided by RealPage, Axiometrics’ 2016 revenue is forecasted to be approximately $13.8 million, which would show growth of 27% compared to 2015.

RealPage said that it expects the acquisition of Axiometrics to represent a valuation of approximately 8 times EBITDA once the company is fully integrated by early 2018.

“The acquisition of Axiometrics furthers our goal to become the definitive source for accurate data intelligence regarding the acquisition, operation and disposition of every market-rate apartment in the U.S.,” said Steve Winn, chairman and CEO of RealPage.

Ron Johnsey, the CEO of Axiometrics, called the deal a “big win” for the company’s clients and for the multifamily rental housing industry.

“By combining with RealPage, we will vastly expand our data coverage and forecasting capabilities and thereby increase the value we offer to all constituents in the apartment housing industry,” Johnsey said.