Carrolton, Texas–RealPage, Inc. has acquired substantially all of the assets and selected liabilities of Level One, an on-demand apartment leasing center servicing customers throughout the U.S.
RealPage plans to combine Level One with its CrossFire product family and will provide leasing and maintenance services to over 4,000 apartment communities in the U.S. Level One’s on-demand leasing service is designed to enable owners to lease more apartments, reduce overall marketing expense and free-up on-site leasing staff to focus more energy on resident satisfaction and renewals.
RealPage paid $54 million in cash and a deferred payment of $8 million which is payable in common stock or cash at RealPage’s election within 18 months of closing. In conjunction with this acquisition, RealPage borrowed $30 million through its existing revolving credit facility. RealPage expects existing management of Level One to remain with the business. Level One reported revenue of approximately $23 million (unaudited) for the trailing 12 months ended September 30, 2010, with profit margins that are expected to be accretive to RealPage’s 2011 target operating objectives.
Steve Winn, chairman and CEO of RealPage, says, “Combining CrossFire and Level One will create the premier on-demand leasing center for rental properties in the U.S. We expect to market the combined service offering under the Level One brand, which will be run by Buddy Long, the president of Level One.
According to Todd Baldree, CEO of Level One, “We believe new lead generation techniques coupled with on-demand centralized leasing agents available 24 hours a day, 365 days per year will fundamentally change the way apartments are leased by helping owners increase demand for vacant units and reduce overall leasing costs. We wanted to be part of this disruptive change and believe that RealPage is the only firm with the technology, scale and shared vision to actually deploy such advanced capabilities.”