RP Data has bought Pacific Property Technologies, a privately owned electronic property valuations and business process integrator owned by EVR Services.
The consideration paid is $9 million in a combination of cash and RPX shares with an additional incentive component possible for shareholders based on future performance in FY08 and FY09.
The acquisition will provide RP Data with desktop access to banks and financial institutions involved in the mortgage finance process, and substantially enhance the business of its Valuation Services division which was launched recently through its Automatic Valuation Model product.
PPT systems are currently deployed in 12 financial institutions, including Commonwealth Bank of Australia, HSBC Bank Australia, St George Bank, ING Bank and AMP Bank, who collectively cover 50% of the mortgage finance market and property valuation services in
RP Data’s chief executive Graham Mirabito said the PPT acquisition will allow RP Data to cover the entire spectrum of valuation services.
“RP Data will now be a one stop shop for the mortgage finance community and a natural hub for the valuation services industry. PPTs long standing relationship with the finance industry allows rapid deployment of RP Data’s new AVM solutions. Their 30% YOY growth in Electronic desktop valuations ordered by the finance industry demonstrates the support for electronic solutions,” he added.
The PPT business’s revenues for FY07 were over $5 million.
The acquisition will be funded out of existing cash reserves and banking facilities in place.
Australian Property Journal
