MRI Software acquires ASX-listed PropTech Group for $93.4 million*


The combined companies are poised to meet growing consumer demand for a single agency to handle lifetime real estate needs, from tenant to retiree

Sydney, AUSTRALIA – October 31, 2022. Global real estate technology leader MRI software announces that it has entered into a deed implementing the binding program to acquire 100% of PropTech Group Limited (“PTG”) (ASX: PTG.AX) for an estimated value of A$93.4 million. PTG is an operator and investor in real estate software companies, primarily in Australia, New Zealand and the United Kingdom.

The cash offer of AU$0.60 per share, which equates to an implied net worth of approximately A$93.4 million on a fully diluted basis[1] was submitted to the Australian Stock Exchange (ASX) by PTG earlier today (ASX version link here). The offering includes MRI’s acquisition of PTG’s highly respected real estate software brands, including VaultRE, VaultEA, EagleCRM, Real Estate Investor, Blue Site, In a designer wayand RentFind Inspector. Many PTG products complement and enhance the living MRI™ solutions for residential sales and property management – and add new features in other areas.

David Bowie, Managing Director and Senior Vice President (Asia-Pacific) for MRI Software said, This acquisition brings immediate value to our real estate agency clients in the region and represents a significant investment in the future of the wider real estate industry.. In the same way that FinTech has fueled the growth and efficiency of banking and finance over the past decade, we believe PropTech will propel the next generation of real estate to ensure its long-term value and sustainability. contribution to our national economies.

“The business of finding, buying, selling, rentingg, and investing in real estate comes with the same complexities as any high-tech industry and needs the right technology to realize its potential. A combined MRI and PTG will be well equipped to help modern real estate agencies meet changing consumer expectations and market dynamics,” he said.

New data: Australians want a real estate agency for life

A recent national YouGov survey commissioned by MRI in Australia titled “Australian Property Consumer Voice” (link to key findings here) amplifies an example of changing consumer needs: seven in 10 Aussies say it’s a “hassle” to deal with multiple estate agents for property changes. It reveals that on average, Australian property consumers made seven (7) real estate transactions over the past ten years, up to one per year for Millennials (26-41) moving from renting to buying or investing in a relatively short period of time. Among these, a remarkable 3 out of 5 (64%) would prefer to work only with a real estate agency for all their real estate needs.

A lifetime view of a customer, from tenant to retiree, is a significant change in the way many real estate agencies operate today. To retain our customers for life, we believe that an open and connected technology ecosystem is essential. Marketing, sales and property management need to be able to work together to deliver a ‘single view’,” says David Bowie of MRI.

Inclusions of PTG products in MRI acquisition

The acquisition of MRI includes a suite of products from the PTG portfolio that automate and simplify business services at various touchpoints in a client’s relationship with a real estate agency, including:

  1. CRM (Customer Relationship Management): VaultRE, VaultEA, and EagleCRM manage sales/ads, rentals and contacts in a residential or commercial real estate context.
  2. Real estate investment and outlook: Real estate investor locates, compares and analyzes real estate investment opportunities, following national, regional, metropolitan and local market movements.
  3. Property Inspections: RentFind Inspector simplifies property inspection and condition reporting.
  4. Marketing Automation: In a designer way enables agents to self-manage brand assets and campaigns with one-click marketing automation, and SocialEazie offers automated social media marketing for real estate.
  5. Agent and agency websites: WebsiteBlue is a complete professional web design and development service and PropSEO offers all-in-one search engine optimization.

Joe Hanna, PTG Group CEO and Managing Director says, “PTG was founded to help real estate companies find a smarter way to do business – and to help our industry thrive. Bringing our respective innovations together in a single ecosystem makes sense as agencies rise to the challenge of keeping their clients for life. the support of our shareholders to ensure the deal is completed in the months ahead so that we can collectively continue to make a positive difference.”

MRI’s David Bowie adds, “MRI has served the real estate industry for over 50 years – including over 25 years in Australia and New Zealand. We look forward to working with PTG’s leadership team and employees to continue to deliver on our shared commitment to deliver real estate industry choice through an open and connected PropTech ecosystem – one that helps agencies drive innovation and launch the next generation of real estate in Australia and New Zealand.”

The Australian Stock Exchange (ASX) was formally advised by PTG to AEDT on October 31, 2022. The acquisition was unanimously approved by the boards of MRI and PTG and is pending shareholder and regulatory approval. PTG will continue to serve its customers as usual, without interruption. The regular procedure should take a few months. MRI is advised by Highbury Partnership, as financial advisor, and Corrs, as legal advisor.

[1] Implied equity value based on a cash proposal of $0.60 per PropTech Group share multiplied by 155,645,079 issued PropTech Group shares (on a fully diluted basis).


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