MRI Software to acquire ASX-listed PropTech Group

MRI Software to acquire ASX-listed PropTech Group

MRI Software has announced it has entered into a binding Scheme Implementation Deed to acquire 100 percent of PropTech Group Limited for an estimated value of $93.4 million. 

PTG is an operator and investor in real estate software companies, primarily in Australia, New Zealand, and the United Kingdom. 

The offer includes MRI acquiring PTG’s well-respected real estate software brands including VaultRE, VaultEA, EagleCRM, Real Estate Investar, Website Blue, Designly, and RentFind Inspector. 

Many of PTG’s products complement and strengthen the MRI Living™ suite of solutions for residential sales and property management – and add new capabilities in other areas.

MRI Software managing director and senior vice president (Asia Pacific) David Bowie (pictured left) said the acquisition brought immediate value to their real estate agency clients while representing a significant investment in the industry’s future.

“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,” David 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.” 

Data from a recent MRI-commissioned report, Voice of the Australian Real Estate Consumer, revealed Australians want one real estate agency for life.

Key findings included that seven in 10 Australians say it’s a “hassle” to deal with multiple real estate agencies for property changes. 

Results showed that, on average, Australian real estate consumers had made seven property transactions over the past ten years. 

Millennials (the population aged 26 to 41) had up to one transaction per year – moving from rentals to buying or investing in a relatively short period of time. 

“A lifetime view of a client from tenant to retiree is a significant shift in the way many real estate agencies operate today,” David said.

“To keep clients for life, we believe an open and connected technology ecosystem is a must. Marketing, sales, and property management need to be able to work together to deliver a ‘single view’.”

MRI’s acquisition includes a range of PTG portfolio products that automate and simplify business services at various touch points in a client’s relationship with a real estate agency, including: 

Customer Relationship Management

VaultRE, VaultEA, and EagleCRM manage sales/listings, rentals, and contacts in a residential or commercial property context.

Property Investment and Insights

Real Estate Investar locates, compares, and analyses property investment opportunities, tracking national, regional, metro, and local market movements.

Property Inspections

RentFind Inspector simplifies property inspection and condition report generation.

Marketing Automation

Designly allows agents to self-manage brand assets and campaigns with one-click marketing automation, and SocialEazie offers automated social media marketing for real estate.

Agent and Agency Websites

WebsiteBlue is a full-service professional web design and development service, and PropSEO offers all-in-one search engine optimisation.

PropTech Group CEO and managing director Joe Hanna (pictured right) said PTG was founded to help real estate businesses find a smarter way to do business – and to help the industry prosper. 

“Bringing our respective innovations together in one ecosystem makes sense as agencies rise to the challenge of keeping clients for life,” he said.

“I welcome our shareholders’ support to secure closure on the agreement in the coming months so we can collectively crack on with making a positive difference.” 

David said that MRI had served the real estate industry for more than 50 years – including over 25 years in Australia and New Zealand. 

“We look forward to working with PTG’s management team and employees to continue delivering on our shared commitment to offer the real estate industry choice across an open and connected proptech ecosystem – one that supports agencies in driving further innovation and pioneering the next generation of real estate in Australia and New Zealand,” he said. 

The 60 cents per share offer was submitted to the Australian Stock Exchange by PTG on October 31. The acquisition has been unanimously approved by the boards of MRI and PTG and is pending shareholder and regulatory approval. 

PTG will continue to serve its clients as usual, without interruption. 

Due process is expected to take a few months. MRI is being advised by Highbury Partnership, as financial adviser, and Corrs, as legal adviser.

Company backgrounds

PropTech Group invests in, develops, and sells real estate software to real estate agencies and investors through various platforms in Australia, New Zealand, and the United Kingdom. It offers residential and commercial CRM, property management, inspections, marketing automation, agent and agency websites, data and analytics, integrations, payment solutions, and security and privacy products. The company was formerly known as Real Estate Investor Group Limited and changed its name to PropTech Group Limited in October 2020. The PropTech Group Limited was incorporated in 2009 and is based in Melbourne.

MRI Software is a global proptech leader, providing real estate software solutions for commercial, residential, and social housing that transform the way communities live, work and play. MRI’s open and connected, AI-first platform empowers owners, operators and occupiers in commercial and residential property organisations to innovate in rapidly changing markets. MRI has been a trailblazer in the proptech industry for more than five decades, serving more than two million users worldwide. Through innovative solutions and a rich partner ecosystem, MRI gives real estate companies the freedom to realise their vision of building thriving communities and stronger businesses.