Altus Strengthens CRE Data and Analytics Capabilities Through Acquisition of Reonomy

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TORONTO, Nov. 11, 2021 (GLOBE NEWSWIRE) — Altus Group Restricted (TSX: AIF) (the “Firm” or “Altus”), a number one supplier of software program, information options and impartial advisory providers to the worldwide business actual property (“CRE”) {industry}, introduced immediately that it has signed a definitive settlement to accumulate Scryer, Inc. (dba Reonomy) (“Reonomy”), a quick rising, AI-powered information platform for the CRE {industry}, for US$201.5 million (roughly C$249.5 million), (on a cash-free/debt-free foundation) topic to changes. The transaction is predicted to shut on November 12, 2021.

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Mike Gordon, Chief Government Officer of Altus Group stated:

“The mix of Reonomy’s AI-powered information platform with Altus’ suite of software program, information and analytics capabilities creates a really compelling shopper providing that may allow our purchasers to raised handle efficiency and threat inside their CRE portfolios with data-driven insights, predictive analytics and alert capabilities. It considerably accelerates our transformative innovation in AI predictive information analytics by higher positioning us technologically, with information science and analytics experience, and with a strong dataset so as to add analytics into workflows that not solely look again at what occurred and why, however sit up for machine studying informing us on what would possibly occur subsequent.” 

Acquisition Highlights

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Based in 2013, Reonomy is a number one U.S. CRE information and analytics supplier leveraging synthetic intelligence and machine studying applied sciences to empower actual property {industry} professionals with data-driven insights and options to realize complete market data, uncover alternatives, and automate workflows.

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Reonomy’s AI-powered information platform connects disparate property info by leveraging huge information sources, together with a number of public and proprietary information feeds, along with AI machine studying to combination market intelligence on business properties throughout the U.S., together with assessor, census, transaction, geospatial, possession and occupant information. Utilizing AI machine studying and proprietary entity decision capabilities, Reonomy then hyperlinks all the info sources for each business asset with a single distinctive identifier (Reonomy ID). The ensuing dataset is an industry-leading assortment of insights throughout greater than 52 million tax parcels and over 38 million business properties, accounting for almost the entire business stock within the U.S. Reonomy’s crew of roughly 115 professionals might be built-in with the Firm’s Altus Analytics enterprise.

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Richard Sarkis, Government Chairman and Co-Founding father of Reonomy stated:

“I co-founded Reonomy with a really direct mission to resolve a urgent pain-point within the CRE {industry} – to attach information and produce higher transparency to the CRE market at a time when credible info on this important asset class was nonetheless scarce. Altus Group shares in our mission and has performed a pivotal function in advancing the transformation of the CRE {industry}. We’re very excited in regards to the alternatives that becoming a member of Altus Group will convey and the way it paves the way in which for continued innovation. Leveraging Altus’ distinctive place within the CRE worth chain with our information and analytics capabilities is exceptionally highly effective and I’m assured that collectively we are going to create appreciable worth for our {industry} and mixed stakeholders.”

Jorge Blanco, Chief Product Officer of Altus Group , added:

“Collectively, we will present modern insights and analytics in a brand new and revolutionary method. The Reonomy crew has finished an distinctive job leveraging AI machine studying to resolve key information administration challenges within the CRE {industry} and unveil hidden information relationships. Integrating Reonomy’s information and technical capabilities with our not too long ago acquired StratoDem Analytics platform for predictive analytics will allow us to ship analytics at scale, and when built-in along with our foundational ARGUS software program options, might be transformative for the CRE {industry}. Our purchasers will be capable of acquire deep insights on their CRE belongings in a manner that’s by no means been finished earlier than.”

Reonomy’s trailing twelve-month to September 30, 2021 revenues have been US$18.3 million and Reonomy had an Adjusted EBITDA lack of US$16.9 million reflecting its funding concentrate on person progress, platform improvement and income acceleration. Considerably all of Reonomy’s revenues are recurring, in keeping with Altus Group’s Over Time income definition. Administration anticipates that with the anticipated synergies, the affect of Reonomy on Altus’ Adjusted EBITDA for 2022 might be nominal. The acquisition is predicted to be accretive to Altus’ Adjusted EBITDA in 2023. As well as, as required by IFRS, Altus Group expects to have an accounting adjustment on Reonomy’s deferred revenues. However Reonomy’s affect to the Altus Analytics’ Adjusted EBITDA in 2022, Administration continues to anticipate a year-over-year enchancment in Altus Analytics Adjusted EBITDA margins for full 12 months 2022.

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On closing, Altus pays US$198.5 million (roughly C$245.8 million) in money, funded by money available and borrowings beneath the Firm’s credit score services.  As well as, Altus will problem widespread shares from treasury to Reonomy staff valued at US$3.0 million (roughly C$3.7 million). These widespread shares might be topic to restrictions and can vest in equal installments on the primary and second anniversaries of the issuance date.  With this transaction, the Firm’s funded debt to Adjusted EBITDA leverage ratio is predicted to extend to roughly 3.0x.  Given the anticipated synergies and present sturdy money flows, Altus expects to de-lever to a funded debt to EBITDA leverage ratio within the low 2.0x vary by the top of 2022.

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Convention Name Particulars

The Firm will maintain a convention name immediately, November 11, 2021, at 5:00 pm ET to debate its third quarter 2021 outcomes and the small print of this transaction. A replay of the webcast might be made out there on Altus Group’s Investor Relations part of its web site.

About Altus Group Restricted

Altus Group Restricted is a number one supplier of software program, information options and impartial advisory providers to the worldwide business actual property {industry}. Our companies, Altus Analytics and Altus Business Actual Property Consulting, replicate many years of expertise, a variety of experience, and technology-enabled capabilities. Our options empower purchasers to research, acquire perception and acknowledge worth on their actual property investments. Headquartered in Canada, now we have roughly 2,600 staff all over the world, with operations in North America, Europe and Asia Pacific. Our purchasers embody lots of the world’s largest business actual property {industry} members. Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the Toronto Inventory Change beneath the image AIF. For extra info on Altus Group, please go to: www.altusgroup.com .

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Ahead-Wanting Info

Sure info on this press launch might represent “forward-looking info” throughout the that means of relevant securities laws. All info contained on this press launch, apart from statements of present and historic truth, is forward-looking info. Ahead-looking info consists of, however shouldn’t be restricted to, the dialogue of our enterprise and our targets, targets, methods, priorities, intentions, plans, beliefs, expectations and estimates, and our expectations of the enterprise, our operations, monetary efficiency and situation. Typically, forward-looking info might be recognized by use of phrases corresponding to “consider”, “anticipate”, “anticipate”, “estimate”, “intend”, “might”, “will”, “would”, “might”, “ought to”, “proceed”, “plan”, “aim”, “goal”, “stay” and different related expressions and the detrimental of such expressions, though not all forward-looking info comprise these figuring out phrases. All the forward-looking info on this press launch is certified by this cautionary assertion.

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Ahead-looking info shouldn’t be, and can’t be, a assure of future outcomes or occasions. Ahead-looking info is predicated on, amongst different issues, opinions, assumptions, estimates and analyses that, whereas thought of cheap by us on the date the forward-looking info is supplied, inherently are topic to important dangers, uncertainties, contingencies and different components which will trigger precise outcomes, efficiency or achievements, {industry} outcomes or occasions to be materially completely different from these expressed or implied by the forward-looking info. The fabric components or assumptions that we recognized and utilized in drawing conclusions or making forecasts or projections set out within the forward-looking info embody, however will not be restricted to: our capacity to fulfill its “Income” and “Adjusted EBITDA” targets, together with assumptions on Altus Analytics Bookings progress, subscription and upkeep renewal charges, shopper retention charges, progress in our Information Options and Appraisal Administration companies, assumptions on the Argus Software program income mannequin, license gross sales, cloud conversion (together with timing and charge), the 2021 post-acquisition monetary outcomes of Scryer, Inc. being consistent with historic outcomes, anticipated income, price, and value avoidance synergies might be realized, assumptions on different Altus Analytics contributors, bills, working leverage, and overseas trade; having out there money available to repay debt on our anticipated timelines; engagement and product pipeline alternatives in Altus Analytics will end in related definitive agreements; settlement volumes within the Property Tax enterprise will happen on a well timed foundation and that evaluation authorities will course of appeals in a way in keeping with expectations; the profitable execution of our enterprise methods; constant and secure financial situations or situations within the monetary markets; constant and secure laws within the numerous international locations during which we function; no disruptive modifications within the expertise surroundings; the chance to accumulate accretive companies and the absence of detrimental monetary and different impacts ensuing from strategic investments or acquisitions on brief time period outcomes; the profitable integration of acquired companies; and the continued availability of certified professionals.
Projections can also be impacted by macroeconomic components, along with different components not controllable by the Firm. We’ve additionally made sure macroeconomic and basic {industry} assumptions within the preparation of such forward-looking info. We consider that the expectations mirrored in forward-looking info are based mostly upon cheap assumptions; nevertheless, we may give no assurance that precise outcomes might be in keeping with the forward-looking info. Not all components which have an effect on the forward-looking info are recognized, and precise outcomes might fluctuate from the projected leads to a cloth respect, and could also be above or under the forward-looking info offered in a cloth respect.

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The COVID-19 pandemic has solid further uncertainty on every of those components and assumptions. There might be no assurance that they are going to proceed to be legitimate. Given the fast tempo of change with respect to the COVID-19 pandemic, it’s troublesome to make additional assumptions about these issues. The period, extent and severity of the affect the COVID-19 pandemic, together with measures to forestall its unfold, could have on our enterprise is unsure and troublesome to foretell right now. As of the date of this press launch lots of our places of work and purchasers stay topic to limitations and restrictions set to cut back the unfold of COVID-19, and a good portion of our staff proceed to work remotely.

Inherent within the forward-looking info are recognized and unknown dangers, uncertainties and different components that might trigger our precise outcomes, efficiency or achievements, or {industry} outcomes, to vary materially from any outcomes, efficiency or achievements expressed or implied by such forward-looking info. These dangers, uncertainties and different components that might trigger precise outcomes to vary materially from the forward-looking info embody, however will not be restricted to: the final state of the financial system; the COVID ‐ 19 pandemic; foreign money; our monetary efficiency; our monetary targets; the business actual property market; {industry} competitors; our acquisitions; our cloud subscriptions transition; software program renewals; skilled expertise; third celebration info; enterprise transactions; new product introductions; technological change; mental property; expertise technique; info expertise governance and safety; our product pipeline; property tax appeals; legislative and regulatory modifications; fixed-price and contingency engagements; appraisal and appraisal administration mandates; the Canadian multi-residential market; buyer focus and the lack of materials purchasers; rates of interest; credit score; earnings tax issues; well being and security hazards; our contractual obligations; authorized proceedings; our insurance coverage limits; our capacity to fulfill the solvency necessities essential to make dividend funds; leverage and monetary covenants; our share worth; our capital investments; and the issuance of further widespread shares, in addition to these described in our annual publicly filed paperwork, together with the Annual Info Kind for the 12 months ended December 31, 2020 (which can be found on SEDAR at www.sedar.com). As well as, in respect of the June 13, 2021 cybersecurity incident, whereas now we have applied our cybersecurity and enterprise continuity protocols and adopted further measures to boost the safety of our IT techniques to assist detect and forestall future makes an attempt or incidents of malicious exercise, we’re topic to a variety of dangers and uncertainties in reference to the incident. Such dangers and uncertainties embody, however will not be restricted to: the end result of the continuing investigation into the incident; prices associated to the investigation and any potential liabilities, regulatory investigation or lawsuit ensuing from the incident; prices associated to and the effectiveness of our mitigation and remediation efforts; our capacity to get well proceeds beneath our insurance coverage insurance policies; and the potential lack of buyer and different stakeholder confidence in our capacity to guard their info, and the potential opposed monetary affect such lack of confidence might have on our enterprise.

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Given these dangers, uncertainties and different components, traders mustn’t place undue reliance on forward-looking info as a prediction of precise outcomes. The forward-looking info displays administration’s present expectations and beliefs relating to future occasions and working efficiency and is predicated on info presently out there to administration. Though now we have tried to establish vital components that might trigger precise outcomes to vary materially from the forward-looking info contained herein, there are different components that might trigger outcomes to not be as anticipated, estimated or meant. The forward-looking info contained herein is present as of the date of this press launch and, besides as required beneath relevant regulation, we don’t undertake to replace or revise it to replicate new occasions or circumstances. Moreover, we undertake no obligation to touch upon analyses, expectations or statements made by third events in respect of Altus Group, our monetary or working outcomes, or our securities.

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Sure info on this press launch could also be thought of as “monetary outlook” throughout the that means of relevant securities laws. The aim of this monetary outlook is to offer readers with disclosure relating to Altus Group’s cheap expectations as to the anticipated outcomes of its proposed enterprise actions for the intervals indicated. Readers are cautioned that the monetary outlook might not be acceptable for different functions.

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Altus Group                                                         
Elizabeth Lambe                                                
Senior Supervisor World Communications                        
416.641.9787                                                        
Elizabeth.Lambe@altusgroup.com