Proptech Group executive Joe Hanna. Image – Proptech Group.
  • PTG to raise $17.5 million for the acquisition
  • Will raise PTG markets share of real estate CRM to 38%
  • Last closed at 83.5 cents

Proptech Group (ASX: PTG) has had a strong start to 2021. This follows a number of moves that have increased PTG’s share of the Australian real estate CRM (client relationship management software) market.

As part of this move, the company has acquired CRM provider Eagle Software, and as the company said in a statement, this “strengthens PropTech Group’s product offering by supplementing VaultRE with a market-leading independent agency focused product offering.”

VaultRE is a leading CRM provider for the real estate industry, with its developers exiting MyDesktop (previously owned by Domain) to build up a totally new system, which was acquired by Proptech Group last year.

VaultRE also won ‘most innovative scale-up‘ in this year’s Proptech Awards.

Earlier this year

In February, Proptech Group ‘swooped‘ on Brisbane-based web developer Website Blue after relisting on the ASX under the PTG ticker. Prior to that, Proptech Group had been known as ‘Real Estate Investar’.

The company’s shares had not been performing particularly well throughout 2019, trading around 20 cents, but following the rebrand and VaultRE acquisition has since picked up steam.

Image – Google.

In March, PTG signed with Harcourts to replace the Harcourts H1 CRM product.


Proptech Group announced it will be raising $17.5 million for the acquisition of Eagle Software.

As part of the company strategy, PTG said the acquisition will increase the Australia New Zealand real estate CRM market share from 31% to 38%.

The transaction sees the real estate CRM, website and marketing solution provider taken over by PTG “on a cash and debt-free basis for $7.5 million in upfront consideration (cash and scrip) and up to an additional $7.5 million earn-out based on performance against growth hurdles assessed over the period to May 2022.”

“Eagle Software is expected to contribute incremental revenues of ~$3.3 million and EBITDA of ~$0.6 million in FY21E.”

Proptech Group

“The acquisition will be funded by an institutional placement of ~$7.1 million and a 1-for 8.57 accelerated non-renounceable entitlement offer of up to ~$10.4 million, together totalling up to $17.5 million. The institutional component of the entitlement offer (totalling ~$6.0 million) is fully underwritten.”

Equity raising

The $17.5 million raise will be comprised of a $7.1 million placement and a $10.4 million entitlement offer.

Placement will be offered to institutional investors and sophisticated and professional investors at 72 cents per share.

The price is a discount to the last traded price of the company on Friday last week at 83.5 cents.

An entitlement offer will be made as well, also at 72 cents.

The offer “will consist of a 1-for-8.57 accelerated pro-rata non-renounceable entitlement offer,” comprising around $6 million from an institutional offer, and $4.4 million in a retail offer.

“Under the Entitlement Offer, eligible shareholders are invited to subscribe for 1 PropTechGroup share for every 8.57 shares they hold as at 7pm (Sydney time) on Wednesday, 30 June 2021.”

The institutional entitlement offer will commence today, the retail offer opening on 5 July and closing 15 July.

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