Expanded RealPage offering will create industry’s leading resident billing and energy management platform.
RealPage, Inc., a leading provider of on demand software and software-enabled services for the multifamily, single-family and vacation rental housing industries, announced it has agreed to acquire NWP Services Corporation. NWP is a leading provider of cloud-based resident billing, electronic payments, energy management, back office accounting and IT infrastructure solutions.
RealPage offers similar solutions across a portion of its platform and the company plans to integrate NWP functionality with those solutions throughout the remainder of 2016. The combined offering is expected to create the leading resident billing, energy management, and back office services platform in the rental housing industry. The platform will enable property owners and managers to increase the collection of rent, utilities, small balances, vacant unit recovery as well as provide full-service residential and commercial back-office accounting solutions.
Steve Winn, Chairman and CEO of RealPage commented: “We have admired NWP for many years and I am excited to combine forces to offer our clients more functionality and enhanced services. We expect the acquisition will allow us to expand our footprint, and introduce new resident-oriented solutions with greater speed and scale.”
The completion of the acquisition remains subject to certain standard conditions, and is expected to close during March 2016. The acquisition purchase price of approximately $68 million in cash, $70 million less expected cash acquired, is subject to a reduction for outstanding indebtedness and unpaid transaction expenses and subject to working capital adjustments. For the year ended December 31, 2015, revenue for NWP was approximately $58 million with EBITDA of approximately $6 million. The company expects the acquisition to contribute $45 million in revenue and $5 million of EBITDA during 2016. Ron Reed will be named SVP, Resident Billing Services and he and the NWP team will report to William Chaney.
Bryan Hill, CFO and Treasurer of RealPage added: “The acquisition of NWP is a great example of the type of investments we prioritize under our capital allocation strategy. We expect to realize significant synergies once we integrate the best of both platforms, removing redundant technology as well as back-office costs. An important secondary benefit of the acquisition is the addition of approximately 200,000 new rental housing units that provide RealPage with an opportunity to cross-sell our current solutions. With the acquisition of NWP, total units served by one or more RealPage solutions are expected to be 10.8 million.
William Chaney, EVP of Enterprise Solutions stated: “I am excited to welcome the NWP team to RealPage. We have admired their leadership team, culture and innovation for some time. NWP is a great fit for RealPage because it not only significantly expands our footprint, but also allows us to accelerate next-generation product development for certain segments of the high-growth Resident Services product category, which Ron Reed from NWP will lead.”
Ron Reed, CEO of NWP commented: “RealPage is the natural home for NWP. Both leadership teams are extremely aligned on the importance of customer service and innovation. I am excited to lead a talented team to integrate the best of each platform and focus on accelerating our shared vision of creating the industry’s leading resident billing, energy management and back-office services platform.”