- The $0.60 cash per share offer represents a 131% premium to the closing price of $0.26 on 28 October
- MRI Software has been in the sector for 50 years, decades before the advent of the internet
- The scheme will be voted on in January
Global proptech leader MRI Software has announced it is entering into a binding Scheme Implementation Deed to acquire 100% of PropTech Group Limited (ASX: PTG).
Currently operating and investing in real estate software companies across Australia, New Zealand and the United Kingdom, PTG received a $0.60 cash per share offer. This equates to an estimated equity value of $93.4 million.
Software brands falling under the brand include VaultEA, EagleCRM, Real Estate Investar, Website Blue, Designly and RentFind Inspector. Much of these blends with the MRI Living suite of solutions for residential sales and property management.
David Bowie, Managing Director and Senior Vice President (Asia Pacific) for MRI Software, said the acquisition brings value to their real estate agency clients in an immediate manner and represents a significant investment in the future of the sector.
“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,” he said.
“The business of finding, buying, selling, renting, and investing in property comes with the same complexities as any advanced industry – and needs the right technology to enable its potential.
“A combined MRI and PTG will be well-equipped to help modern real estate agencies respond to changing consumer expectations and market dynamics.”
David Bowie, MRI Software
The Ohio-based MRI is privately held and has offices in the United States, Canada, Australia, New Zealand, Hong Kong, Singapore, South Africa and the UK. It has been in the property tech industry for over 50 years – decades before the internet – and serves over two million users worldwide.
If this Scheme is implemented, the $0.60 cash per share represents a premium of 131% to the closing price on 28 October of $0.26, 125% to PTG’s 30-fay volume weighted average price (“VWAP”) of $0.267 and 122% to PropTech Group’s 90-day VWAP of $0.271.
PropTech Group Chairman, Simon Baker said “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 timeframe that would not otherwise be available.”
The scheme booklet is set to be dispatched to shareholders in December. It is likely that shareholders will vote on the scheme in January 2023.
