ClickPay Acquired by Royalty Payer for ClickPay Purchase
NASDAQ:RP, a leader in providing solutions and analysis solutions to the global residential and commercial markets, today announces an acquisition of ClickPay, a complete online payments solution that serves 2.3 million residential, commercial, residential and cooperative properties. With ClickPay, RealPage significantly extends its reach in the owner-occupied residential and commercial building (HOA) sector, extends its reach in the New York area, and strengthens the incorporation of its front-end lease platforms into third-party asset managers' workflows.
At over 16 million entities, the Fee Structure for Architects and Engineers (HOA) segment is valued, and Royal Page predicts that present and potential applications applying to the segment will result in a combined volume of approximately $60 per entity per year. The integrated RealPage solution, which includes the refurbishment and upgrading (HOA) segment, will cover several property sectors, from letting to owner-occupied properties with a combined volume of over 62 million properties.
Reinforces the company's consumer-oriented front-end lease learning environment. ClickPay, in conjunction with the recent purchase of On-Site, combined functions to acquire, transform and engage tenants that are built into third parties' beloved asset class managers. Its front-end solution comprises web sites, contact centers, online lease, CRM, screening, resident portal and payments. Provides one of the world' s leading payments processors for investment properties with an $55 billion per year total deal throughput.
Extends RealPage's footprint in the New York big city and complements the recent takeover of On-Site, the biggest New York -based search service group. ClickPay's customer database is also an important cross-sell option for the real page platforms. Extends real page capability to provide locking box and on-line financial functions, removing the need for time-consuming and wasteful hand cheque handling.
At $218.5 million, the consideration consisted of $76.3 million in real estate and $142.2 million in US dollars in U.S. dollars denominated in real estate. An adjustment of the working cap is made to the selling prices and the company is entitled to retain the proceeds for possible compensation entitlements. As of the date of the transaction, RoyalPage has finalized the sale of approximately 88% of the ClickPay stake and anticipates that the sale of the remainder will be finalized within the next six month.
ClickPay generated revenues in excess of $22 million for the year ended December 31, 2017, with a minor impact on underlying earnings before interest, taxes, depreciation and amortization (EBITDA). ClickPay expects ClickPay to generate revenues of $23 million for the rest of 2018, equivalent to approximately 45% sales increase in 2018. We expect ClickPay to be insignificant for the underlying realPage 2018 EBITDA.
Nonetheless, the Group anticipates earnings and cost efficiencies that will have a positive impact on long-term sales momentum and the goals of increasing the underlying EBITDA margins. ClickPay Chairman and CEO Ernest Muller and Tom Kiernan will stay with the firm alongside around 100 people. The ClickPay office is located in New York City.
We are a world leader in providing property management solutions and analysis services. Customers are using the ecosystem to enhance operational excellence and return on investment. Established in 1998 and with headquarters in Richardson, Texas, USA, and subsidiaries in North America, Europe and Asia, the company currently has over 12,400 customers around the world.
Further information on RealPage can be found at www.realpage.com. ClickPay is the premier automated claims management system that can accept most forms of cash, such as cheques, e-checks (ACH), bank transfer and direct debits. With ClickPay, you can offer end-to-end merchant billing solutions that improve your operating efficiency and drive revenue to grow. ClickPay's portal provides homeowners and business leaders with a customisable online settlement and collection system to improve operating efficiency and improve occupant experience.
Forward-looking" forward-looking information includes forward-looking information about the anticipated cash and other value of the ClickPay transaction to RealPage and its present and prospective clients, which includes the anticipated opportunities for significant business development, the anticipated advantages of entry into the New York conurbation area, the expansion of the Company's footprint in the New York conurbation, and the incorporation of RealPage's front-end technology into third parties' real estate asset managers, the accelerated pace of one of the most rapidly growing areas of our business,
ClickPay's combination of advantages with the already previously communicated on-site purchase, our plan for the inclusion and development of the ClickPay businesses, our expectation of the date of closing of the remainder of the ClickPay deal, ClickPay's ability to contribute to RealPage 2018 revenues and underlying EBITDA, as well as the ability to achieve earnings and cost efficiencies that will positively impact RealPage's long-term revenues and underlying EBITDA margins and the goals of expanding its underlying margins, and the expectation of certain retained personnel after the combination.
a) the potential that general business environment, as well as lease speed or uncertainties, could lead to a reduction in information technologies expenditure, particularly in the residential property market, or a delay in purchase decision making; b) an increased level of policy benefits; c) an increased level of client cancellation; d) the ability to grow revenues with current clients and acquire new clients; e) the inability of RealPage, ClickPay or other acquirees to successfully incorporate or create anticipated synergy effects with prospective acquirees;
f ) the date and performance of new launches by RealPage or its competition (including the Launches purchased through ClickPay or other acquisitions); g) changes in the pricing policy of RealPage or its competition; h) litigation or other supervisory procedures; i) the failure of RealPage or its competition to generate sales or margins; and j) these other threats and uncertainties set forth in RealPage's filings with the Securities and Exchange Commission ("SEC") or filings with the Securities and Exchange Commission ("SEC") regarding documentation that RealPage may have available to the SEC.
The information contained in this press information is current as of the date of this press information and RealPage assumes no obligation to publicly update such information unless otherwise required by applicable laws.