© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Proptech On the Rise As Residential and Commercial Real Estate Investors Look to Battle Inflationary Pressures and Rising Interest Rates, Reveals Hampleton Partners
Posted 9th November 2022

Proptech On the Rise As Residential and Commercial Real Estate Investors Look to Battle Inflationary Pressures and Rising Interest Rates, Reveals Hampleton Partners

The Proptech M&A Market Report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals that the first half of 2022 saw 55 property technology (Proptech) deals, 57 per cent up on 1H2020 and 12 per cent up on 1H2021 numbers.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Proptech On the Rise As Residential and Commercial Real Estate Investors Look to Battle Inflationary Pressures and Rising Interest Rates, Reveals Hampleton Partners
Proptech

The Proptech M&A Market Report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals that the first half of 2022 saw 55 property technology (Proptech) deals, 57 per cent up on 1H2020 and 12 per cent up on 1H2021 numbers.

The previous half-year deal count high was 2H 2019, pre-Covid pandemic, when 63 Proptech deals were completed.

Axel Brill, managing director, Hampleton Partners, said: “The Proptech market doesn’t appear to be slowing down, despite recent market volatility, as capital continues to flow in and the market remains thirsty for technological innovation, especially where it drives operational efficiency.”

 

Enterprise Real Estate Software M&A

The largest of the Proptech segments, capturing 25 per cent of all M&A activity over the past five years, Enterprise Real Estate Software such as document management and e-signing has become a vital replacement to traditional manual documentation delivery to counter travel restrictions, social distancing and remote work, experienced most sharply throughout 2020.

Significant deals in this segment include Spain’s Idealista’s acquisitions of InMovilla and Smiling Cloud to improve CRM software, real estate marketing, invoicing, and virtual property visits.

 

Real Estate Fintech

Deal flow in the real estate Fintech segment proved strong in 1H 2022, despite challenging macroeconomic conditions. Deals increased by 167 per cent between 1H 2021 and 1H 2022. Like most other subsectors, deal volume declined in 1H 2020 as a result of the COVID 19 pandemic.

Two examples of deals in the real estate Fintech segment are:

US-based public company Porch Group’s acquisition of Floify Inc. in a deal valuing it at $86.5 million, late 2021. Floify provides the real estate and finance sectors with automated mortgage origination and management SaaS as well as document management capabilities.

In May 2022, Altus Group’s $28.8 million acquisition of Canada-based Rethink Solutions. Rethink Solutions provides an AI-powered property tax management software with open APIs for firms operating in the North American real estate market. Additional features include tax and expense management, value assessments, budgeting & forecasting, and tax saving tracking software.

 

Property Management SaaS

Deal volume in the Property Management SaaS hit a record high in 2H2021 recording an enormous 250 per cent jump over the previous quarter and a 75 per cent rise over 2H2020.

Aareon’s acquisition of Momentum Software Group in June 2022 is a good example of an acquisition in this space, enabling Aareon to corner the Nordic market.

Momentum, provides property management and energy monitoring software, as well as related APIs for property owners. The software helps firms to manage units, develop housing, monitor energy data, and analyse consumption behaviour.

 

Top acquirers of Proptech companies – past 30 months

The top two acquirers of Proptech companies over the past 30 months and their three most recent acquisitions are: 

MRI 12 acquisitions including: Apartment Data Services; Property Suite NZ and Angus Systems

CoStarGroup 6 acquisitions including – Business IMO; ComReal; Homes.com

 

The future of Proptech technology M&A

Axel Brill, managing director, Hampleton Partners, continued: ”Companies need to flex their M&A muscles and acquire competitive capabilities before interest rates rise even further, whilst also disposing of non-core assets to cut unnecessary costs.

“We expect larger technology companies, both public and private, will continue to actively engage in M&A to accelerate time to market and fill in product gaps. This is vital for tech giants as their competition intensifies during market downturns. As for Proptech valuations, the market will limit high valuations to businesses that have simultaneously demonstrated growth and profitability.”

Categories: Innovation, M&A, News


You Might Also Like
Read Full PostRead - Eye Icon
DXCorr Design Inc. Architect in Embedded Physical IP
Innovation
02/08/2022DXCorr Design Inc. Architect in Embedded Physical IP

A pioneer in the semiconductor industry, DXCorr design is a product based semiconductor company that facilitates SoC design solutions with in-house IPs, incorporating complex memory SRAMs, CAMs, Multiports, memory subsystems, and standard cells.

Read Full PostRead - Eye Icon
Merkle’s Acquisition of Periscopix
M&A
21/05/2015Merkle’s Acquisition of Periscopix

Merkle's Acquisition of Periscopix

Read Full PostRead - Eye Icon
Mexico’s Energy Expansion to be Fuelled by US Natural Gas
Finance
07/05/2015Mexico’s Energy Expansion to be Fuelled by US Natural Gas

Mexico is emerging as a key new marketplace for US natural gas, as government-backed reforms open up the country's energy sector to foreign investment for the first time in more than half a century.

Read Full PostRead - Eye Icon
G. Elias & Co, a Pre-eminent Business law Firm
Legal
01/04/2016G. Elias & Co, a Pre-eminent Business law Firm

G. Elias & Co. is a pre-eminent business law firm with a reputation for carrying out critical, innovative and complex work to the highest standards.

Read Full PostRead - Eye Icon
Blogger Outreach: 7 Benefits to Business
News
03/09/2021Blogger Outreach: 7 Benefits to Business

In this fast-paced and technologically driven world that we live in, modern businesses must keep up pace with current trends and continue to think up fresh and creative ideas to survive and grow.

Read Full PostRead - Eye Icon
Tokenization: Transforming the Future of Asset Ownership
Finance
26/03/2024Tokenization: Transforming the Future of Asset Ownership

In today's digital age, tokenization has emerged as a groundbreaking concept, revolutionizing the way we perceive assets. Tokenization involves representing tangible or intangible assets in digital form using tokens.

Read Full PostRead - Eye Icon
How a Customer Education Platform Decreases Churn
Leadership
05/09/2022How a Customer Education Platform Decreases Churn

Customer education platforms are online tools that help organizations deliver training and support to their customers. These platforms can be used to create and deliver courses, track customer progress, and provide customer support. They can decrease churn by

Read Full PostRead - Eye Icon
Top Business Events in Frankfurt February 2023 You Should Attend
News
26/01/2023Top Business Events in Frankfurt February 2023 You Should Attend

In terms of business, Frankfurt occupies one of the central places in all of Europe. Not only do a huge number of businesses open here, but businessmen also come here in search of new partners, deals, and clients. So many people who want to start their busines

Read Full PostRead - Eye Icon
How Wrongful Death Attorneys Help Loved Ones of Victims Seek Maximum Compensation
Legal
17/04/2023How Wrongful Death Attorneys Help Loved Ones of Victims Seek Maximum Compensation

While nothing can bring your loved one back after a wrongful death, and no amount of money can truly compensate you for your loss, receiving maximum compensation can bring your family a sense of justice, closure, and financial security.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow