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4/15/08
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LoopNet, the largest online commercial real estate listing site, has acquired privately held REApplications Inc, a leading provider of on-demand brokerage operations software, for $9.4 mil. Founded in 1999, REApplications is based out of San Diego and provides a comprehensive integrated suite of commercial brokerage automation software.
REApplications' products are focused exclusively on serving the needs of the commercial real estate sector and are web-based, available on-demand on a hosted basis, eliminating the need to install software. The REApplications product suite includes core functions for managing market research including property inventory, listings & comparables, commission management, customer relationship management, project tracking and transaction management.
REApplications’ clients include some of the largest commercial brokerage and property valuation firms in North America, such as Lee & Associates, Coldwell Banker Commercial, Grubb & Ellis|BRE, Colliers Turley Martin Tucker, Cushman & Wakefield LePage, GVA Advantis and Integra Realty Resources, a leading property valuation firm.
"LoopNet's acquisition of REApplications validates our original vision and strategy of supporting the entire lifecycle of a commercial property listing electronically. I think this will be a major milestone for the commercial real estate industry," said Jim Young, Co-Founder of REApplications. "The combination of REApplications and LoopNet brings together a comprehensive management and marketing solution for commercial real estate firms."
REApplications will operate as a wholly-owned subsidiary of LoopNet, with the existing senior operating executives of REApplications remaining in place after the acquisition.
LoopNet expects that REApplications will contribute approximately $2.3 mil in revenues for the remainder of 2008. While REApplications has been consistently profitable as a standalone business, LoopNet expects the transaction to have no significant impact on 2008 EBITDA, and to be dilutive to 2008 EPS in the range of approximately ($.02) per diluted share due to various acquisition and integration related expenses.
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