ASX-listed PropTech firm to sell for $93m

The flurry of local technology mergers and acquisitions is rapidly gaining momentum.

MRI managing director David Bowie. Source: Supplied.

Gold Coast-based software firm PropTech Group is set to be acquired by global property tech outfit MRI Software for $93.4m, a deal the companies say will create a market-leading real estate software company and provide an alluring return for PropTech’s shareholders.

The ASX-listed PropTech Group told shareholders after market close on Monday it had entered into a scheme implementation deed with the Ohio-based MRI that would value it at 60 cents per share, a premium of 131 per cent to its last closing price, and 125 per cent above its 30-day volume weighted average price.

PropTech’s shares last traded at 27 cents on Monday, giving it a valuation of about $36.2m. Its shares are down 56 per cent over the past 12 months as technology companies continue to fall from the historically high valuations they reached during the Covid pandemic.

The PropTech board said it unanimously recommended the deal in the absence of a superior proposal.

“While we believe we are in a strong position to continue to drive strong growth in 2023 and beyond by executing on our clear strategic plan that combines organic and inorganic initiatives, the board believes that the proposal received from MRI represents a compelling opportunity for PropTech shareholders to realise a significant premium to the value of their PropTech shares via the certainty of cash consideration and in a time frame that would not otherwise be available,” PropTech chairman Simon Baker said in a statement.

Founded in 2009, PropTech Group has a number of real estate software brands under its umbrella including VaultRE, VaultEA, EagleCRM, Real Estate Investar, Website Blue, Designly, and RentFind Inspector.

Many of its cloud-based software products would complement and strengthen MRI’s existing residential sales and property management suite, according to MRI Software managing director David Bowie. MRI is a 50-year-old company that has about 3000 employees globally.

“This acquisition brings immediate value to our real estate agency clients in the region and represents a significant investment in the future of the real estate sector more broadly,” Mr Bowie said.

“In the same way FinTech fuelled growth and efficiencies in banking and finance over the last decade, we believe PropTech will propel the next generation of real estate to ensure its long-term value and contribution to our national economies.

The deal will be subject to an independent expert concluding that the scheme is in the best interest of PropTech shareholders as well as court and shareholder approvals, while both companies will pay reciprocal break fees of nearly $1m if it fails to proceed.

PropTech shareholders will vote on the acquisition in January 2023, with the deal then to be implemented in February.