RealPage acquires American Utility Management for approximately $70M
RealPage announced that it has acquired substantially all of the assets of American Utility Management, a provider of utility and energy management solutions for the multifamily housing industry. The acquisition expands the company's Resident Utility Management platform providing billing, invoice processing and bill payment services to over 2.5 million rental units. The purchase price of approximately $70M is subject to certain working capital adjustments and post-acquisition indemnification claims. AUM possessed revenue of approximately $30M for the year ended December 31, 2016. RealPage expects the acquisition to contribute approximately $15M in revenue and an Adjusted EBITDA range of $2M-$3M during 2017. Integration work is expected to be completed by the end of 2018 at which time the company expects the purchase price valuation to represent approximately 7 times Adjusted EBITDA. The AUM team will report to Jason Lindwall, Senior Vice President, Property Management Solutions for RealPage. Mr. Lindwall leads RealPage's Spend Management and Resident Utility Management solutions.