The private equity consortium behind MRI Software, a major provider of real estate technology solutions, is weighing strategic options for the company — including a possible sale or an initial public offering on a U.S. exchange — in a move that could value the business at as much as $10 billion, including debt, according to people familiar with the talks.
These people, who requested anonymity because the discussions are confidential, said a transaction could take place within the next 12 months. The deliberations underscore how investor interest in property-technology and application software companies remains strong, even in a more cautious market for IPOs.
MRI Software is backed by TA Associates, Harvest Partners, and GI Partners. The group has hired Goldman Sachs to run the process after inbound inquiries from other real estate and technology firms sparked formal discussions, the sources said. While MRI Software, TA Associates, GI Partners, and Goldman Sachs all declined to comment, Harvest Partners did not immediately respond to a request for comment.
Headquartered in Solon, Ohio, MRI develops software that helps property owners, investors, and managers oversee both commercial and residential portfolios. Its platforms cover accounting, leasing, financial management, and other core functions for real estate operators. The company has become a staple provider across the industry as landlords and asset managers push to digitize their workflows and consolidate their data.
Financially, MRI Software is approaching $1 billion in annual revenue and generates roughly $400 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), the people said. The company has posted steady annual growth of about 10%, with more than half of its revenue coming from markets outside the United States.
A sale or public listing at the targeted valuation would mark one of the largest exits in the real estate software sector and deliver windfall gains for its private equity owners. GI Partners, which first invested in MRI Software in 2015, is on track to return about nine times its original equity investment, while TA Associates, the largest holder of MRI, is projected to make roughly seven times its money, according to the sources.
The potential deal also reflects a broader trend in the application software space, where private equity firms and strategic buyers alike have been willing to pay premium prices for companies with sticky, recurring revenue. Real estate technology in particular has attracted fresh M&A activity as property owners seek more efficient ways to manage portfolios in an uncertain market.
Just last month, Reuters reported that Altus Group — a Canadian software and data analytics provider focused on real estate — was exploring a potential sale after receiving its own inbound acquisition interest. Together, these moves highlight how real estate software providers are becoming prime targets for investors betting on the digital transformation of property management worldwide.
Pump Radar
Stock Alerts