SmartRenta provider of smart home automation and Internet of Things (IoT) platforms for businesses, today announced the purchase of resident maintenance and services software SightPlan for $135 million in an all-cash deal, according to The Real Deal.
The announcement came just after SmartRent, which went public via the SPAC merger last summer, released its results on Thursday. It says the acquisition will add about $10 million to its revenue for the remainder of 2022, which equates to a ten times earnings multiple.
“Where is their pipeline today and where they are in portfolio conversion, we are very happy with that. “We’re already embedded with them, we know this business intimately,” SmartRent founder and CEO Lucas Haldeman told The Real Deal.
Haldeman says SightPlan, which has about 6,000 properties in its portfolio, will continue to operate out of Orlando. He added that the entire team will join SmartRent, including CEO Terry Danner and President Joseph Westlake, and that he expects them to play a key role in the future of the organization.
Acquisition follows SmartRent’s recent acquisition of an alternative smart home company iQuue for an undisclosed amount in January, and is part of an ongoing trend of proptech consolidation that is expected to continue throughout the year.
“SightPlan was at a crossroads in its evolution, deciding between raising additional capital or partnering with a complementary real estate enterprise software provider,” SightPlan President Westlake said in a statement.
Following the $2.2 billion SPAC merger of SmartRent with a fifth wall-sponsored white-check-firm, it appears the company is now determined to use its access to the capital market to assimilate rivals, bolster its tech stack and increase its market size.
The company reported doubling its revenue from $52 million in 2020 to $110 million in fiscal 2021, and says it also doubled the number of units on its platform to 300,000 from 2020 to 2021.
Although shares of the public company have fallen from $14 per share in September to just over $6 per share today, Haldeman said the drop is in line with general trends in the public market.
“The market is moving away from growth – you’ve seen it across all of our peers and high-growth software companies,” he said. “We think this is an amazing business, and 100% growth is no reason to shake the stick. We think the stock price will take care of itself as we continue to execute” , Haldeman said.
In other recent proptech news, Tishman Speyer has locked in $100 million in funding for its first proptech fund, which will focus on early-stage startups. Community Partners also completed fundraising for a $300 million social impact and affordable housing fund.