CARROLLTON, TX - RealPage, Inc., a leading provider of on demand software and software-enabled services to the rental housing industry, announced that it has acquired RentMineOnline Inc. ("RMO"), a software-as-a-service provider of social network marketing solutions for the multifamily rental housing industry. The acquisition will extend the Company's LeaseStar™ multichannel managed marketing solution which enables property owners and managers to originate, syndicate, manage and capture leads more effectively and at less overall cost.
RentMineOnline helps property owners and managers generate leads by combining the success of online resident referral programs with the power of social networks, such as Facebook™, Twitter™ and LinkedIn™, as well as email. Since the average social media user has over 150 Facebook™ friends and Twitter™ followers, social network resident referral campaigns are quickly becoming an extremely important source of leads for the rental housing industry.
"Adding a social network referral channel to our LeaseStar™ solution is expected to help increase the percentage of overall leads that a property can generate organically, reducing dependency on more expensive traditional listing services," said Steve Winn, Chairman and CEO of RealPage. "Social influence in the rental decision is proving to increase conversion rates, so property owners and managers are now using this type of tool to improve both the quantity and quality of leads that they receive. In addition, we expect social network recommendations to help improve search engine optimization of our LeaseStar™ websites."
"We are excited to become part of the RealPage team," said Ed Spiegel, CEO of Rent Mine Online. "We have revolutionized the way property owners and managers utilize social media to drive demand reaching over 10 million unique friends since our inception. We are delighted that our vision and dedication on this front will enable us to become part of the LeaseStar™ multichannel marketing solution which should transform the way property owners and managers solve the total rental housing demand equation."
The Company paid closing merger consideration of approximately $6.0 million at close subject to working capital adjustments. The Merger Agreement provides for the payment of up to an additional $3.5 million to RMO stockholders, subject to a reduction for indemnification claims, working capital adjustments, or the failure of RMO to achieve certain revenue milestones. The Merger Agreement also provides for additional contingent consideration payments to RMO stockholders if RMO achieves certain revenue milestones.
RealPage expects existing management of RMO will remain with the business. Based on information provided to the Company by RMO, RMO exited the June 30, 2012 quarter with trailing twelve month revenue of approximately $1.5 million with profit margins that are expected to be consistent with RealPage's 2012 target operating objectives.