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RealPage (RP) Acquires Rentlytics, Expands its Portfolio

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RealPage, Inc. recently entered an agreement to acquire Rentlytics, for $57 million in cash, in a bid to expand its business data analytics capabilities, and enhance foothold in the real estate market.

Rentlytics provides data services across more property management software platforms than RealPage. In fact, this buyout will add about 200,000 new multifamily units to RealPage’s business intelligence and performance analytics platform.

Management expects Rentlytics to contribute about $9 million in revenues during the full year of 2019.

The highlight of Rentlytics is its newly launched “Renovation Manager” which manages renovation workflow and provides better insights on proceeds achievable through renovations on a per-unit and per-property basis. This software is particularly attractive because the U.S real estate market currently has more than 10,000 properties under renovation, and more properties are anticipated to come under the under-renovation umbrella. Post-acquisition, the marketing of this product is at the top of RealPage’s priority list.

The acquisition, or rather, the series of acquisitions that RealPage has initiated in the past couple of years seem to be a strategy to gain more share in its addressable markets.

RealPage’s Recent Gambits

With the acquisition of Rentlytics, RealPage completed its third acquisition of 2018. The company acquired ClickPay for $218.5 million in April this year, followed by the $103 million buyout of LeaseLabs in August.

Apart from focusing on acquisitions, the provider of on-demand property management solutions and data analytics to property owners and managers is also focusing on organic improvements. Last month, the company released the RealPage Commercial Property Management 5.0, a new version of its platform that provides property management software and related data analytics solutions.

This is anticipated to accelerate the adoption of the company’s platform, consequently bolstering the company’s top line further going ahead. Notably, for the quarter ended June 2018, the company reported revenues of $216.36 million, surpassing the year-ago revenues of $162.25 million.
 

Zacks Rank & Stocks to Consider

RealPage currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader Computer and Technology are Twilio Inc. (TWLO - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) , and Vishay Intertechnology, Inc. (VSH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth of Twilio, PayPal and Vishay is pegged at 9%, 17.76%, and 9.16%, respectively.

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