Planon’s Acquisition Of Reasult Will Expand Its Reach Across The Real Estate Market
On 20 January 2021, integrated workplace management system vendor (IWMS) Planon announced that it had acquired a majority stake in Reasult, a provider of financial management software for real estate investors and asset managers. Founded in 2000, and headquartered in the Netherlands, Reasult provides its software to real estate portfolio managers across the DACH region. Reasult’s customer base includes a growing range of real estate firms such as Amvest, Ballast Nedam, Steiner Invest and Ymere.
Planon is a 800-employee IWMS vendor with over 2,500 building occupiers using its software directly and a further 1,000 organizations using its software via facilities management services firms. The acquisition of Reasult is a strong strategic move that provides Planon with enhanced access to a new buyer type: asset and property managers looking to improve the financial performance of an investment portfolio. This will grow Planon’s addressable market to $7 billion by improving its competitive position for property management software and investment management software segments. This larger market comprises software vendors such as AppFolio, MRI and Yardi.
While much of the real estate investment community has been focused on crisis management and rent collection over the past 12 months, asset managers will seek new software tools to manage more complex portfolios. Since COVID-19, investors are re-evaluating their portfolio strategies to consider alternative property types, such as data centres, warehouses, fulfilment centres and suburban offices. Diversifying real estate portfolios can help investors reduce their exposure to real estate price shocks in specific sectors.
What does the Planon-Reasult deal mean for the rest of the IWMS market? This deal indicates that 2021 will be another bumper year for M&A in the IWMS sector, as vendors grow customer bases and extend software capabilities. IWMS vendors will look to take advantage of new acquisition opportunities arising because of the 2020 recession – driving deal premiums down and making new acquisitions targets available. Unlike the previous flurry of acquisition activity in the IWMS market, which focused primarily on space management software, IWMS vendors will now continue to buy up a broader set of vendors, including those providing capital planning, energy and maintenance management software. In 2020, for example, Spacewell acquired DEXMA. Such moves will help IWMS vendors win customers in new industries.
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