Texas-Based RealPage Purchases Hackensack’s ClickPay
HACKENSACK, NJ — Richardson, TX-based RealPage, an apartment industry service firm, made another big acquisition by paying $218.5 million USD for New Jersey-based ClickPay, an electronic payment platform founded in 2009, which services 2.3 million apartments, condos, co-ops and homeowner associations. This acquisition of ClickPay creates one of the country’s largest property payment processing platforms with more than $55 billion in annual transaction volume.
In a prepared statement, Steven Winn, Chairman and CEO of RealPage, said, “Expanding our payments solution to include ClickPay has the potential to further accelerate one of the fastest growing areas of our platform. According to data from the U.S. Census Bureau American Housing Survey, over $525 billion of rent is collected annually. Only a fraction of that volume is processed electronically, and we estimate that the vast majority of the U.S. still pays rent with a paper check.”
ClickPay enables expansion of RealPage’s services to handle electronic payments by the millions of residents and landlords the company services allowing RealPage the chance to expand ClickPay’s operations in New Jersey and New York — areas where RealPage wants to grow its presence.
Matt Davis, Senior Vice President of RealPage Financial Services, detailed in a statement, ”We anticipate ClickPay will remain a standalone platform supporting most third-party property management solutions, but will also begin integrating RealPage’s front office capabilities tailored for rental real estate. Accordingly, ClickPay operations in New Jersey and New York will be expanded to further support rental clients and to further penetrate the HOA segment. We expect that the combined transaction volume generated through the RealPage and ClickPay platforms will provide the scale necessary to drive a more efficient and cost effective solution for our clients.”
RealPage made this purchase with a combination of $76.3 million in stock and $142.2 million in cash. Last year, ClickPay had revenue of more than $22 million, and RealPage predicts ClickPay will contribute $23 million in revenue for the remainder of 2018.
Ernest Muller, Chairman of ClickPay released a statement and said, “Our clients need assistance automating the entire resident life cycle. By joining forces with RealPage, we will be able to grow our best-in-class payment platform and instantly add a suite of resident-facing solutions including online service requests, online leasing, online concierge services, package tracking, utility billing, insurance, and lead generation tools.”
RealPage has a market value of more than $4 billion and serves more than 12,400 clients worldwide, and this acquisition is only the latest for RealPage. Last year it paid $250 million for California-based On-Site Manager Inc., a firm that provides software and business platforms for apartment leasing and management companies, and in June of last year, RealPage agreed to pay $70 million to buy American Utility Management, a provider of utility and energy management systems for the apartment industry. Additionally, in early 2017, RealPage paid $300 million for Lease Rent Options, an Atlanta apartment revenue management firm as well as spending $75 million to buy apartment research firm Axiometrics.
Continue the New Jersey conversation. Check out CapRE’s upcoming events ->