US RealPage acquires UK-based PEX, expanding international presence

RealPage Inc, a leading global provider of software and data analytics to the real estate industry, has announced the acquisition of all of the outstanding capital stock of PEX Software Limited, a London-based provider of property management, online leasing and resident software solutions. The platform serves market-leading clients in the United Kingdom, European Union and Australia that manage private rental sector (PRS) and student rental housing properties.
Industry experts believe that the PRS market will be the fastest-growing sector of the rental housing economy in the UK over the next 10 years. In contrast, other rental housing stock, including social and government housing, is forecasted to decline. RealPage believes PEX will help secure a leading market position in the high-growth PRS segment of rental housing in the UK and serve as a launching pad for expansion into the European Union.
“We successfully launched our student property management solution in the UK in partnership with Greystar Europe in 2016,” said William Chaney, EVP of Enterprise Solutions at RealPage. “Since then, we have expanded our offering to include resident portals, payments, business intelligence and revenue management solutions tailored for the UK. PEX provides RealPage with local presence in the UK and Australia, which is critically important to support our expansion needs in these markets.”
“By connecting PEX’s innovative and unique consumer-facing solutions with RealPage’s comprehensive property management, accounting and asset optimization platforms, we expect to be the leading rental housing software provider able to support the needs of the rapidly-growing international build-to-rent market,” said Philip Evans, CEO and founder of PEX. “My team and I have already started integrating our solutions with RealPage’s solutions, enabling our clients to benefit quickly from the synergies.”
RealPage expects to retain PEX’s London and Sydney offices as a base of operations for broader solution expansion in those markets. RealPage intends to augment the staff in London and Sydney with sales, technical support and implementation specialists. PEX’s development operation staff in Valencia, Spain, is expected to be housed in RealPage’s Barcelona office.
The acquisition purchase price of approximately $6.2 million in cash is subject to working capital adjustments and post-acquisition indemnification claims. PEX is expected to have an immaterial impact on financial performance during 2017, but will contribute to the company’s international expansion plans, which are expected to become increasingly important to RealPage.