Real Estate Technology Sector Summary - GCA Altium · ATTOM is a leading, scale platform investment...

1

Real Estate Technology Sector Summary

Q1 2019

22

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYExecutive Summary

Select Q1 2019 Active Investors Select Q1 2019 Active Strategic Acquirers

Q1 2019 represents yet another quarter of record capital inflow and investment into the real estate technology market

▪ ~1.7Bn of growth equity capital invested in the sector in Q1, and nearly another ~$1Bn in debt for the iBuyer and property investment firms

▪ A record 103 property tech companies raised financing in the quarter – including 21 capital raises of $20M or more

Transformative M&A announcements in mortgage, portal and brokerage markets reflect continued strong strategic and PE interest in the property tech market

▪ Thoma Bravo’s $3.4Bn acquisition of Ellie Mae is a landscape defining transaction in the mortgage tech market → signals continued PE interest in enterprise software leaders and the property tech market

– Ellie Mae is a platform play for Thoma Bravo, and GCA expects continued M&A activity in the highly fragmented mortgage tech market driven by strategics and PE-backed platforms such as Optimal Blue (GTCR) and Capsilon (Francisco Partners)

▪ JLL acquired HFF in a ~$2.1Bn deal that signals the continued importance of economies of scale for the commercial services industry → commercial real estate tech investment is also gaining momentum with a number of companies raising capital in the past 12 months (e.g. Bowery, Honest Buildings, VTS, Reonomy and others)

The iBuyer market continues to be a key driver of activity in the residential real estate market, with Zillow bringing back Rich Barton as CEO in a move to aggressively expand its iBuyer program

▪ Opendoor, Knock and Offerpad completed significant capital / debt raises in Q1 2019

▪ Zillow’s push into the iBuyer market adds a significant, well capitalized competitor into an already crowded space, with other real estate giants such as Keller Williams rumored to be entering the space as well

GCA remains highly active in the category, having advised ATTOM Data on its sale to Lovell Minnick in Q1 and zipLogix on its sale to Lone Wolf Technologies in April 2019 (case studies enclosed)

33

GCA REAL ESTATE TECHNOLOGY TEAM

Key Sub-Sector Coverage Verticals

Residential RE Software

Commercial RE Software

Mortgage / Lending

Title / Insurance

Home Services

Facilities Management

Construction Tech

IWMS

Chris GoughManaging Director

Head of Real Estate TechnologyPhone: (415) [email protected]

Kegan GreeneDirector

Financial TechnologyPhone: (415) 318-3686

[email protected]

Acquired by

We advised the seller

Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Majority Interest Acquired by


Acquired by


Acquired by


Acquired by


Investment from


Minority Investment From


MBO backed by


Acquired by

We advised the sellerWe advised the seller

Acquired by

The Leading Advisor in the Property Tech Ecosystem

Acquired by


A Portfolio Company of

44

$1,600

$984

$1,306

$943

$1,681

$100

$100

$50

$355

$969

$497$422

$1,298

$1,700

$1,084

$1,356 $1,298

$2,650

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARY

($MM)Number of Deals Equity Raise

Avg. Deal Value

(Equity):$21.8$11.7$25.8$23.2$7.3$8.3

Source: Pitchbook and Press Releases.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.(2) Excludes Airbnb, Houzz, OYO Hotels and We Company financing rounds.(3) Equity / debt mix per Mike DelPrete.

Quarterly Financing Activity(1)(2) Select Q1 2019 Financing Transactions

60

58

(7)

85

$11.4

Ann. Date Company

Selected Investor(s)

Amount Invested

Funding to Date

Post-Money

Valuation

3/20 $300$1,345 Equity /

$3,000 Debt$3,800

3/19 $45 $76 NA

3/14$70 Equity / $495 Debt

$150 Equity / $825 Debt

NA

3/5 $48 $111 $373

2/27 $65 $120 $380

2/26 $62 $179 NA

2/20 $200 $297 NA

2/11 $30 $41 $121

2/6 $25 $41 NA

1/31 $75 $130 $500

1/29 $58 $112 $155

1/29 LL Funds $60 $68 NA

1/25 $33 $33 NA

1/22Diana Nelson

Muneer Satter$45 $76 NA

1/15$26 Equity / $374 Debt

$39 Equity / $394 Debt

NA

1/8 $25 $97 NA

1/7 $13 $20 NA

($MM)

60

$16.3

56

62

Deal Dashboard

83

103

Debt Raise

(3)

55Source: CapitalIQ , Pitchbook and press releases.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.

.

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYDeal Dashboard

Quarterly M&A Activity(1) Select Q1 2019 M&A Transactions

($MM)

Ann. Date Target Acquirer Enterprise Value

3/19 $2,083

3/7 NA

3/5 NA

3/4 NA

2/27 NA

2/21 NA

2/15 / $6,477

2/12 $3,390

2/7 NA

2/7 NA

2/4 NA

1/9 NA

1/8 NA

1/7 NA

9

20

16

29

23

26 27

24

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

66

Residential Real Estate Technology

Company FoundedAmt. Raised/

Invested

2014$1,345 Equity

/ $3,000 Debt

2012 $1,113

2009 $213

2015$150 Equity /

$825 Debt

2008 $104

2011 $103

2008 $85

2012 $85

2015 $76

2015 $76

Source: Pitchbook, Company filings, Company websites, press releases.(1) Excludes Airbnb and Houzz financing rounds.(2) Equity / debt mix per Mike DelPrete.(3) Represents equity invested only.

(4) Reflects combined funding after VTS/Hightower merger. VTS and Hightower individually raised $88mm and $22mm, respectively.

(3)

Capital raise completed in Q1 2019

($MM) ($MM) ($MM)

(1) Mortgage / Closing / Insurance Technology


Invested

2012 $184

2015 $180

2013 $166

2014 $130

2018 $120

2010 $112

2015 $110

2010 $85

2015 $78

1998 $55

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYPrivate Company Funding Leaders

(4)

(2)

CRE / Facilities / Construction Technology Residential Real Estate Technology


Invested

2015 $1,110

2012 $326

2002 $307

2013 $297

1995 $259

2015 $179

2012 $175

2014 $133

2011 $111

2011 $110 /

77Source: Pitchbook, Company filings, Company websites, press releases.

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYPrivate Company Funding Leaders

$50MM - $100MM

$100MM - $200MM

$200MM - $500MM

>$500MM

$25MM - $50MM

1

1

1

Equity Raised to Date:

($4.4Bn) ($614MM) ($1.6Bn) ($7.4Bn Equity / $1Bn Debt)

Other Mega Funding Leaders

($298MM)

88

(60%)

(40%)

(20%)

0%

20%

40%

60%

Apr-18 May-18 Jun-18 Jul-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

54%

7%

2% 5%

13%

(4%)

(39%)

25%

(1%)

Source: Capital IQ.

RE Media / Portals

Property MgmtSoftware

RE Sharing Economy / Travel

Residential Brokerage

LTM Share Price Performance

54%

Property Management

Software

APPF: 113%AGYS: 58%RP: 27%

Credit / Mortgage Marketing

13%


Public Real Estate Technology Ecosystem

LTM Share Price Performance

(39%)


RE Data / RE Software

Traditional Mortgage / Title

2%


(4%)


25%

Broader Data

Broader Data

7%


Commercial Brokerage

(1%)


5%

RE Media / Portals

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYPublic Company Valuation

99

30.0x

19.0x17.0x

14.4x 13.9x 12.8x

8.3x 8.2x 7.0x

0.0x

6.0x

12.0x

18.0x

24.0x

30.0x

36.0x

10.2x

6.5x 6.2x

3.8x3.1x 3.0x

1.6x0.9x 0.8x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

2019E Revenue / 2019E EBITDA Multiple


Traditional Mortgage

/ Title

RE Sharing Economy /

Travel



Property Mgmt

Software

RE Media / Portals

Enterprise Value / 2019E Revenue Enterprise Value / 2019E EBITDA

Public Real Estate Technology Ecosystem

Broader Data

Source: Capital IQ.Multiples represent median value of sector group.



Traditional Mortgage

/ Title

RE Sharing Economy /

Travel



Property Mgmt

Software

RE Media / Portals

Broader Data


Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYPublic Company Valuation (cont’d)

6.2x / 30.0x

Property Management

Software

3.1x / 12.8x


1.6x / 8.3x


0.9x / 7.0x


3.8x / 13.9x


6.5x / 17.0x

Broader Data

3.0x / 14.4x


0.8x / 8.2x


10.2x / 19.0x

RE Media / Portals

1010

Case Study: Sale of ATTOM Data Solutions to Lovell Minnick Partners

GCA acted as exclusive financial advisor to ATTOM, a leading provider of national real estate data solutions, on its sale to Lovell Minnick Partners.

TRANSACTION DETAILS

Closed

January 2019

SECTORS

Real Estate / Mortgage

Technology

Property / Insurance

Technology

Data Licensing

DEAL TYPE

M&A

Transaction Summary

▪ On January 8, 2019, Lovell Minnick Partners announced that it had completed the acquisition of ATTOM Data Solutions (“ATTOM” or the “Company”)

− Financial terms of the transaction were not

disclosed

▪ Headquartered in Irvine, California, ATTOM is a leading provider of comprehensive data solutions to the real estate, mortgage, insurance, marketing and adjacent markets

▪ Lovell Minnick Partners is a private equity firm with expertise in investing in the financial technology and services industry. Since its inception in 1999, Lovell Minnick Partners has raised $2.7 billion in committed capital and has completed investments in over 45 companies

▪ GCA acted as exclusive financial advisor to ATTOM in connection with the transaction

Strategic Rationale

▪ ATTOM is a leading, scale platform investment in the real estate data solutions market

− Company’s proprietary data solutions include

property tax, deed, mortgage, foreclosure,

environmental risk, natural hazard and

neighborhood data for 150+ million U.S. residential

and commercial properties, covering 99% of the

nation’s population

− Company serves 225+ data customers with

multiyear contracts

− ATTOM management has generated strong organic

growth and successfully pursued accretive strategic

opportunities, including its acquisition of

neighborhood data provider Onboard Informatics in

early 2018

▪ Lovell Minnick will continue to support management in executing its strategic plan to build the leading technology platform in the real estate data industry

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARY

1111

Case Study: Sale of zipLogix to Lone Wolf Real Estate TechnologiesQ1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARY

GCA acted as exclusive financial advisor to zipLogix, a leading provider of real estate transaction management software, on its sale to Lone Wolf Technologies, a portfolio company of Vista Equity Partners.

TRANSACTION DETAILS

Closed

April 2019

SECTOR

Residential Real Estate

Technology

DEAL TYPE

M&A

Transaction Summary

▪ On April 22, 2019, Lone Wolf Technologies (“Lone Wolf”) announced that it had completed the acquisition of zipLogix LLC (“zipLogix” or the “Company”)

− Financial terms of the transaction were not

disclosed

▪ Headquartered in Fraser, Michigan, zipLogix is the leading provider of real estate transaction forms and transaction documentation management software for the residential real estate sector

▪ Lone Wolf, a portfolio company of Vista Equity Partners, provides real estate software solutions, such as back office management, marketing and e-signature platforms, to more than 20,000 real estate offices across North America

▪ GCA acted as exclusive financial advisor to zipLogix in connection with the transaction

Strategic Rationale

▪ zipLogix will immediately establish Lone Wolf as the leader in real estate transaction forms

− zipLogix management has advanced market

penetration in the Company’s forms business having

successfully developed strong upsell opportunities

including e-signature, CRM and database linking

solutions

▪ Lone Wolf will support zipLogix’s continued operations and leverage the combined Company’s cross-selling opportunities

▪ The combined company will service over 1.4 million agents, 20,000 offices, and 1,000 MLSs and Associations in the U.S. and Canada

1212

$360

$417

$480

$535

$620

$113 $124$123

$155$201

CY16A CY17A CY18A CY19E CY20E

Revenue Adj. EBITDA

CAGR: 12%

CAGR: 11%

0.0mm

2.0mm

4.0mm

6.0mm

8.0mm

10.0mm

12.0mm

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19

Source: Capital IQ, Company filings, Company websites and press releases, JMP Equity Research.(1) Projected financials per Company management.(2) Premium to the price as of 1/31/19, one day prior to the publication of a Dealreporter article reporting Ellie Mae’s exploration of strategic alternatives.

(3) As of February 1, 2019 per Ellie Mae press release.(4) EBITDA multiples based on adjusted EBITDA.

Ellie Mae Stock Price Performance

− On February 12, Ellie Mae, Inc. (NYSE:ELLI) announced a definitive agreement to be acquired by Thoma Bravo, LLC for $99.00 per share in cash at an implied equity value of $3.7Bn and an implied enterprise value of $3.4Bn

− The agreement included a 35-day “go-shop” period in which Ellie Mae may have solicited alternative bids

− The transaction closed on April 18

Acquired

Closed

Transaction Overview Ellie Mae Financial Detail(1)

$99.00 / Share

$3.4Bn

($MM, except per share data)

(2)

(3)

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Thoma Bravo Acquires Ellie Mae (NYSE:ELLI)

(4)

Stock Data Transaction Valuation Multiples

Metric Multiple

EV / Revenue

52-Week High $116.90 CY18A $480 7.1x

52-Week Low $58.49 CY19E $535 6.3x

CY20E $620 5.5xTransaction Premium

Premium to 1 Day Prior 21% EV / Adj. EBITDA

Premium to Unaffected Price 31% CY18A $123 27.7x

Premium to 30-Day VWAP 47% CY19E $155 21.9x

Premium to 1-Year VWAP 21% CY20E $201 16.9x

At $99.00 per Share:

FDSO 37.3 Net Debt ($303)

Equity Value $3,693 Enterprise Value $3,390

1313Source: Capital IQ, Company websites and press releases.(1) Premium to the price as of 12/13/18, one day prior to the publication of a Financial Times article reporting Scout24’s exploration of strategic alternatives.

Scout24 Stock Price Performance

− On February 15, Hellman & Friedman and Blackstone jointly launched a joint voluntary public tender offer to acquire Scout24 for $51.84 per share in cash at an implied enterprise value of $6.5Bn

− Hellman & Friedman and Blackstone had acquired 70% of Scout24 in 2014 at an implied enterprise value of $2.9Bn before exiting completely in February, 2018

− The transaction is expected to close in the second half of May 2019

Acquired

Announced

Transaction Overview Scout24 Financial Detail

$51.84 / Share

$6.5Bn

(1)


Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Hellman & Friedman and Blackstone Acquire Scout24 AG (XTRA:G24)

$479

$586$630

$692

$771

$211

$275 $272

$359$416


Revenue EBITDA

CAGR: 14%

CAGR: 10%


Metric Multiple

Closing Price (4/22/2019) $51.73 EV / Revenue

52-Week High $54.74 CY18A $630 10.3x

52-Week Low $37.40 CY19E $692 9.4x



Premium to Unaffected Price 27% CY18A $272 23.8x

Premium to 30-Day VWAP 11% CY19E $359 18.0x


At $51.84 per share

FDSO 108.5 Net Debt $854

Equity Value $5,623 Enterprise Value $6,4770.0mm

0.5mm

1.0mm

1.5mm

2.0mm

2.5mm

3.0mm

3.5mm

4.0mm

4.5mm

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19

https://www.blackstone.com/

1414

Market-Leading Position (as of June 2018)

Source: Bloomberg, Company investor presentations, Company websites, press releases and filings.

Scout 24 Highlights

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Hellman & Friedman and Blackstone Acquire Scout24 AG (XTRA:G24) (cont’d)

Two Core Brands with Potential to Capture the Full Consumer Journey

Five Core European Markets

450kProperty listings on ImmobilienScout24

Selected Transaction Commentary

1.8xCompared to the next competitor

540MMUser minutes spent on

ImmobilienScout24

2.6xCompared to the next competitor

3MMNetworkwide active listings

180MMMonthly visits to

core brands

CY18A Revenue by Segment

Hellman & Friedman and Blackstone are known to Scout24 as trusted and long-term partners given their prior ownership and familiarity with the company. The terms of the offer represent an attractive opportunity for a highly strategic partnership that recognizes the quality of the Scout24 platform, its employees, customers and partners. I am delighted about our joint long-term vision and ambition to turn Scout24 into a leading European digital player.

-Tobias Hartmann, CEO”

“ So why are Blackstone and Hellman & Friedman bothering? Their backers will be hoping that it’s all about the likely earnings power of Scout24 in five or seven years’ time. This is a winner-takes-all market. Look beyond the commission reforms and Scout24’s future financial performance and dominance could be worth an awful lot more than today.

-Chris Hughes, Bloomberg”

“

Immobilien47%

Auto Scout34%

Consumer Services

19%

1515

0.0mm

0.5mm

1.0mm

1.5mm

2.0mm

2.5mm

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19

Source: Capital IQ, Company websites and press releases, William Blair Equity Research.

HFF Stock Price Performance

− On March 19, JLL announced a definitive agreement to acquire HFF for $24.63 in cash and 0.1505 JLL shares per share for a total consideration of $49.16 per HFF share based on JLL share pricing as of March 18

− JLL estimates run-rate EBITDA synergies of $60MM as a result of the acquisition

− The transaction supports JLL’s 2025 growth target of doubling capital markets revenue from 2017 levels

− The transaction is expected to close in the third quarter of 2019

Acquired

Announced

Transaction Overview HFF Financial Detail

$49.16 / Share

$2.1Bn


Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: JLL, Inc. (NYSE:JLL) Acquires HFF, Inc. (NYSE:HF)

$517

$609

$662 $662 $675

$134$163 $169 $170 $176


Revenue EBITDA

CAGR: 6%

CAGR: 5%


Metric Multiple

Closing Price (4/22/2019) $47.72 EV / Revenue

52-Week High $49.25 CY18A $662 3.1x

52-Week Low $31.38 CY19E $662 3.1x



Premium to 30-Day VWAP 9% CY18A $169 12.3x


CY20E $176 11.9x

At $49.16 per Share:

FDSO 41.4 Net Debt $47

Equity Value $2,036 Enterprise Value $2,083

1616Source: Company investor presentations, Company websites, press releases and filings.

HFF Highlights

Transaction Highlights

Q1 2019 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: JLL, Inc. (NYSE:JLL) Acquires HFF, Inc. (NYSE:HF) (cont’d)

Full-Service Capital Markets Capabilities Two Large Customer Segments

Capital Providers Capital Consumers

− Banks

− Debt Funds

− REITs

− Life Insurance Cos.

− Family Offices

− Private Equity

− Developers

− Private Owners

− Private Equity Funds

− Institutional Investors

− REITs

$100BnTransaction

Volume in 2018

2,587Transactions

in 2018

1,074Associates Worldwide

$81BnLoan Servicing

Portfolio

The combination with HFF provides a unique opportunity to accelerate growth and establish JLL as a leading capital markets intermediary, with outstanding capabilities.

-Christian Ulbrich, CEO”

It will allow us to accelerate the growth of our Capital Markets presence in the U.S. and globally,as well as great enhanced capabilities for our clients and build an even stronger talent platform.

-Christian Ulbrich, CEO”

“

“ HFF's deep distribution network combined with JLL's originations platform will accelerate our origination and debt replacement volumes.

-Stephanie Plaines, CFO”

“

This is a terrific transaction for our shareholders, providing them with an immediate cash payment and the opportunity to participate in the long-term value of the combined company.

-Mark Gibson, CEO, HFF

“

”

Pro-Forma 2018 Financial Profile vs. JLL Standalone

Consolidated Fee Revenue

Capital Markets Fee Revenue

Consolidated Adj. EBITDA

Adj. EBITDA % Margin

Cash Flow from Operations

11%

68%

21%

9%

34%

17

APPENDIX

1818

APPENDIX

($MM)

20

18

Selected M&A Activity

Source: Capital IQ , Pitchbook and Company filings.(1) EBITDA multiples based on adjusted EBITDA.

20

19

(1) (1)

4/22/2019 NA NA NA NA NAProvider of real etstate transaction forms and transaction management software for the residential real estate

industry.

3/26/2019 NA NA NA NA NA Provider of an operational cost analytics platform for commercial real estate facilities.

3/19/2019 $2,083 3.1x 3.1x 12.3x 12.3x Provider of capital markets and brokerage services to owners of commercial real estate.

3/7/2019 NA NA NA NA NA Provider of an online hotel booking platform offering low rates on last-minute bookings.

3/5/2019 NA NA NA NA NA Operator of a real estate appraisal firm that specializes in right-of-way appraisal and litigation.

3/4/2019 NA NA NA NA NA Operator of a luxury residential real estate company focusing on the San Francisco Bay Area.

3/1/2019 NA NA NA NA NA Provider of an online real estate brokerage offering low-cost home sales.

2/27/2019 NA NA NA NA NA Provider of AI-based customer relationship management SaaS to real estate brokers and agents.

2/15/2019 6,477 10.3x 9.4x 23.8x 18.0x Operator of an online classified ad network offering housing, vehicles and more.

2/14/2019 NA NA NA NA NAProvides an online platform for home exchanges, connecting like-minded travelers and enabling them to swap

vacation homes.

2/12/2019 3,390 7.1x 6.3x 27.7x 21.9x Provider of loan origination SaaS for the financial sector.

2/7/2019 NA NA NA NA NA Provider of residential real estate workflow and transaction management software.

2/7/2019 NA NA NA NA NA Developer of a data platform that tracks the identity and behavior of people in the physical world.

2/4/2019 NA NA NA NA NA Provider of operating cost analytics software for large data center operators.

1/9/2019 / NA NA NA NA NA Provider of applicant screening platforms for the multifamily real estate industry and corporate employers.

1/8/2019 NA NA NA NA NA Provider of an AI tool that automates leasing communication for property managers.

1/7/2019 NA NA NA NA NA Provider of national real estate data and analytics.

12/21/2018 105 6.3x NA 8.8x NAProvider of an online analysis website for consumers seeking advice on financial topics such as insurance,

investing and credit cards.

12/20/2018 275 NA NA NA NADeveloper of a construction bid management platform designed to connect businesses in the construction

industry.

12/17/2018 NA NA NA NA NA Provider of marketing services for real estate in Chantilly, Virginia.

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value LTM NTM LTM NTM Target Description

1919

12/6/2018 NA NA NA NA NA Provider of real estate settlement and title underwriting services.

12/6/2018 NA NA NA NA NAProvider of an online hotel booking platform intended to serve the travelers, expets and locals around the

world.

12/5/2018 NA NA NA NA NA Provider of software designed to offer workplace space management and optimization.

11/21/2018 NA NA NA NA NAProvider of appraisal and title management services to mortgage originators, quality control companies, due

diligence firms, and other institutions involved in the real estate finance industry.

11/20/2018 $875 NA 8.8x NA NA Developer of a construction productivity software intended to deliver real-time project information.

11/8/2018 68 NA NA NA NAProvider of an online property rental management platform designed to make the rental process simple,

secure and intuitive.

11/6/2018 NA NA NA NA NA Provider of information services that help clients in processing real estate transactions.

10/25/2018 NA NA NA NA NA Developer of a property management platform designed to offer information on short-term rentals.

10/22/2018 122 3.5x NA 40.2x NAProvides SaaS-based insurance claims management mobile applications for businesses in the property and

health insurance sector. Also provides insurance claims analytics and change management services.

10/12/2018 57 NA NA NA NA Developer of data analytics platform intended to provide business intelligence to manage properties.

10/4/2018 370 2.0x NA 11.7x NAProvides an online automotive, home, renter's and health insurance quote comparison service for consumers

as well as lead generation services for insurance agents and other businesses.

10/2/2018 NA NA NA NA NAOperates a high-end serviced home rentals platform for rental properties in sixteen countries around the

world.

10/1/2018 NA NA NA NA NALoanDecisions, LoanLogics' product, pricing and eligibility (PPE) unit, offers a platform that allows lenders to

quickly process and price mortgages and other loan products.

9/11/2018 NA NA NA NA NA Provides an online marketplace designed to make buying a home simple and affordable.

8/30/2018 263 5.1x 4.6x 17.0x 14.9x Provides information and marketing services to the commercial real estate industry.

8/29/2018 NA NA NA NA NA Leading luxury real estate brokerage serving California.

8/29/2018 210 NA NA NA NADevelops an online real estate referrals platform designed to match top agents with qualified home buyers and

sellers in real-time.

8/22/2018 NA NA NA NA NA Provides an online platform designed to offer on-demand home repair services.

8/8/2018 6,675 3.7x 3.8x 12.5x 12.6x Provider of business information and software for risk and supply management decisions.

8/6/2018 NA NA NA NA NA Operates an online direct mortgage lending company.

(LoanDecisions Unit)

Source: Capital IQ , Pitchbook and Company filings.(1) Includes $70.2MM in potential earn-outs.(2) Multiples based on $300MM up-front consideration.(3) Includes $14.0MM in potential earn-outs.

APPENDIXSelected M&A Activity (cont’d)

($MM)

(3)

20

18

(1) (2) (2)



2020

8/2/2018 $117 5.9x NA NA NA Operates an innovative interactive media company intended to support the apartment industry.

8/2/2018 NA NA NA NA NAFocuses on reducing expense and exposure of clients' portfolios from origination to disposition, enabling

clients to manage risk across the mortgage lifecycle.

7/31/2018 2,000 7.4x NA 20.0x NA Provides enterprise contract management software.

7/10/2018 NA NA NA NA NADevelops whole loan mortgage trade management software intended to bring automation and transparency to

the spot market for mortgage loans.

7/10/2018 NA NA NA NA NA Develops cloud-based software intended to improve government processes.

7/9/2018 NA NA NA NA NA Operates a residential real estate brokerage in the San Francisco Bay Area.

7/2/2018 39 1.1x NA 12.2x NA Provides commission free real estate services.

6/12/2018 290 NA NA NA NADevelops real-time facility support software services intended for facility maintenance management and

process optimization.

6/6/2018 NA NA NA NA NAProvides software which helps maintenance teams manage work orders, organize / execute preventative

maintenance, predict asset maintenance and manage enterprise assets and equipment inventory.

6/4/2018 NA NA NA NA NA Developer of facility scheduling and event management software.

6/4/2018 NA NA NA NA NA Develops a mortgage processing software designed to accelerate the speed and scaling of mortgage processing.

5/11/2018 3,208 9.7x 7.6x 27.8x 19.6xProvides a searchable real estate classified ads website of properties for sale or rent for consumers in the UK.

Also provides online home value reference content and related rental mobile apps.

5/1/2018 97 NA NA NA NA Provider of property data analytics to the financial sector.

4/23/2018 1,200 NA 6.0x NA NA Provides cloud, SaaS, and on premise commercial construction software solutions.

4/20/2018 219 9.9x 6.8x NA NA Provides a SaaS-based payment and billing platform for the multi-family and commercial real estate industry.

4/12/2018 NA NA NA NA NA Develops desktop, mobile, and Web tools for real estate and mortgage industries.

3/21/2018 NA NA NA NA NA Provides cloud-based medical device and facilities management SaaS for the healthcare industry.

3/18/2018 1,138 0.6x 0.6x 10.1x 7.8x Provides title insurance and real estate transaction services.

3/13/2018 205 2.8x NA NA NA Provides environmental risk information services and solutions.

3/8/2018 NA NA NA NA NA Provides housing software and services intended to help housing authorities effectively manage processes.

(Australia)

(Mortgage Solutions Business)

Source: Capital IQ , Pitchbook and Company filings.


($MM)

($MM)

20

18



2121

2/12/2018 $3,587 2.2x 1.7x NM NMProvides servicing, origination, and transaction based services primarily to single-family residences in the

United States.

2/8/2018 NA NA NA NA NA Develops software for property management.

2/7/2018 419 NA NA NA NAProvides automotive finance and real-estate lending software solutions for banks, thrifts, credit unions,

mortgage companies, and captive finance companies in the United States.

2/2/2018 485 9.2x NA NA NAProvides cloud-based construction program management software to meet the needs of repeat builders in the

construction industry.

1/3/2018 NA NA NA NA NAProvides mobile physical asset management and surveying SaaS for the education, retail, healthcare,

government, infrastructure, leisure and commercial property sectors globally.

12/14/2017 NA NA NA NA NA Provides property management, accounting and facilities management software.

11/17/2017 NA NA NA NA NAProvides an online portal that provides information on real estate properties. Its portal provides ads and other

advertising materials for real estate.

11/16/2017 NA NA NA NA NADevelops an online rental platform designed to help people with disabilities find reasonable and accessible

accommodations when traveling.

11/7/2017 NA NA NA NA NA Provides engineering content management software for businesses and government agencies globally.

10/23/2017 NA NA NA NA NA Developer of rental housing software designed to manage complex tenancy relationships.

10/17/2017 NA NA NA NA NAProvides a cloud-based software system for clients in the condominium development and sales sector with a

comprehensive web-based application.

10/16/2017 NA NA NA NA NADevelops cloud-based transaction management systems designed to create, store, sign and manage all listing,

sales and lease files online.

10/16/2017 NA NA NA NA NAProvides housing management software for public housing authorities and private affordable housing

developments.

10/4/2017 NA NA NA NA NADevelops and supplies real estate management software designed to provide full access to vital information in

real estate.

10/2/2017 NA NA NA NA NADevelops a SaaS-based real estate transaction management software created to help real estate agents manage

their transactions online.

9/12/2017 385 3.9x NA 25.7x NAOperates an online rental search destination that connects apartment shoppers to rental properties throughout

the United States and Canada.

9/8/2017 NA NA NA NA NA Provider of real estate listing management technology to developers and builders.

8/31/2017 128 NA NA NA NAProvides cloud-based intelligent sales software that enables mortgage companies to close more loans by

helping loan officers respond quickly to prospective borrowers.

8/9/2017 NA NA NA NA NA Provides Web-based integrated workplace management SaaS for enterprises.

8/2/2017 1,700 NA NA 18.9x NAProvides an online real estate marketplace allows people to buy and sell commercial and residential real estate

properties online using desktop and mobile technology.

(Lending Solutions Business)


($MM)

($MM)

Source: Capital IQ , Pitchbook and Company filings.(1) Represents value of the 55% stake acquired.

20

17

(1)

20

18



2222Source: Capital IQ , Pitchbook and Company filings.(1) Represents merger of equals between VTS and Hightower.


($MM)

20

16

($MM)

20

17

(1)



8/2/2017 $250 NA NA NA NAProvides a real estate leasing platform that facilitates communicaty marketing, renter qualification, lease

contract generation and document storage.

8/1/2017 NA NA NA NA NA Provides mortgage loan application software, loan origination software, and data security solutions.

7/25/2017 NA NA NA NA NA Develops customer relationship management software and a marketing platform for real estate professionals.

7/10/2017 NA NA NA NA NA Provides an online marketplace that connects borrowers and lenders.

7/3/2017 1,434 3.0x 2.8x 14.2x 11.1x Provider of financial publishing services in the United States.

6/19/2017 70 2.3x NA NA NA Provider of utility management and energy services.

6/13/2017 78 NA NA NA NAProvider of an online real estate agent platform, offering agents maximum property exposure and a host of

services.

6/6/2017 NA NA NA NA NAProvider of an appraisal management platform that uses desktop and cloud-based valuation supply chain

technology that connects all of the parties involved in the appraisal process.

6/1/2017 NA NA NA NA NA Developer of web-based CRM software intended for the real estate industry.

5/23/2017 NA NA NA NA NAProvider of a real estate software platform coupled with an open and connected ecosystem for real estate

businesses.

5/1/2017 588 1.9x 2.0x NM 20.3x Operator of a consumer review website intended to help consumers find service providers.

4/27/2017 NA NA NA NA NAProvider of a web-based land and rural property marketplace, facilitating buying, renting and selling of

properties.

3/13/2017 3,550 2.1x 2.1x 11.2x 7.4xDeveloper of lending and payments software products created to deliver financial technology to banks

worldwide.

2/27/2017 300 8.4x NA 30.0x NA Advanced forecasting mobile app and optimization software used to price real estate units in North America.

2/15/2017 300 NA NA NA NAOperator of an online rental marketplace intended to rent high-end properties. The company's rental platform

provides a marketplace for luxury and high-end villas to rent.

1/24/2017 75 NA NA NA NA Provider of data intelligence services designed to offer apartment market data.

11/29/2016 300 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

9/22/2016 185 NA NA NA NA Provides facilities management SaaS for sustainable resource planning for multi-site corporations.

9/21/2016 NA NA NA NA NA RedVision Systems, Inc. provides title reporting and property research solutions.

7/26/2016 NA NA NA NA NADeveloper and provider of an an end-to-end software as a service customer relationship management, lead

generation and lead management software platform

Mean 4.5x 4.2x 18.6x 13.4x

Median 3.6x 3.8x 15.6x 12.6x

2323Source: Capital IQ and Company filings.“NM” signifies multiple >40x.(1) EBITDA multiples based on adjusted EBITDA.

APPENDIXReal Estate Technology Ecosystem

(1)

RE Media / Portals

CoStar Group, Inc. $487.10 $17,756 ($1,100) $16,655 $1,192 $1,380 14.0x 12.1x NM 33.1x 23.5% 15.8% 29.6% 36.4%

Zillow Group, Inc. $34.36 7,048 (706) 6,342 1,334 2,039 4.8x 3.1x NM NM 23.8% 52.9% 1.9% 2.3%

Scout24 AG $51.81 5,623 854 6,477 630 692 10.3x 9.4x 23.8x 18.0x 7.6% 9.9% 43.2% 51.9%

REA Group Limited $56.00 7,376 176 7,553 660 686 11.4x 11.0x 22.4x 19.0x 10.3% 3.9% 51.1% 58.1%

Rightmove plc $7.06 6,260 (9) 6,251 341 375 18.3x 16.7x 24.3x 21.7x 3.8% 9.9% 75.4% 76.6%

Lifull Co., Ltd. $5.24 704 (37) 666 317 378 2.1x 1.8x 12.5x 11.3x 74.2% 19.0% 16.8% 15.6%

RE Media / Portals

Mean 10.1x 9.0x 20.7x 20.6x 24% 19% 36% 40%

Median 10.9x 10.2x 23.1x 19.0x 17% 13% 36% 44%


Black Knight, Inc. $55.07 $8,256 $1,321 $9,577 $1,114 $1,190 8.6x 8.1x 26.4x 16.2x 5.9% 6.8% 32.6% 49.7%

CoreLogic, Inc. $41.98 3,364 1,709 5,072 1,788 1,667 2.8x 3.0x 13.0x 10.8x (3.4%) (6.8%) 21.8% 28.1%

Altus Group Limited $20.23 802 59 861 374 419 2.3x 2.1x 20.4x 12.7x (1.6%) 11.9% 11.3% 16.2%

Real Matters Inc. $4.25 368 (69) 299 268 287 NM NM NM 22.5x NA NA NM NM


Mean 4.6x 4.4x 19.9x 15.6x 0% 4% 22% 31%

Median 2.8x 3.0x 20.4x 14.4x (2%) 7% 22% 28%

Property Management Software

RealPage, Inc. $63.34 $5,781 $369 $6,150 $869 $992 7.1x 6.2x NM 21.9x 29.6% 14.1% 16.2% 28.4%

AppFolio, Inc. $92.88 3,153 (41) 3,112 190 253 16.4x 12.3x NM NM 32.2% 32.9% 12.9% 20.8%

Agilysys, Inc. $18.76 432 (37) 396 136 152 2.9x 2.6x NM 38.1x 8.2% 11.2% (4.9%) 6.8%

Property Management Software

Mean 8.8x 7.0x NM 30.0x 23% 19% 8% 19%

Median 7.1x 6.2x NM 30.0x 30% 14% 13% 21%


eXp World Holdings, Inc. $10.40 $634 ($18) $616 $500 $895 1.2x 0.7x NM 37.5x 220.4% 78.9% (4.3%) 1.8%

Purplebricks Group plc $1.63 494 (132) 363 171 227 2.1x 1.6x NM NM 55.7% 32.1% (27.7%) (13.5%)

Realogy Holdings Corp. $12.32 1,407 3,570 4,977 5,873 6,029 0.8x 0.8x 7.5x 8.3x (3.9%) 2.7% 11.3% 9.9%

Redfin Corporation $21.48 1,944 (315) 1,629 487 620 3.3x 2.6x NM NM 31.6% 27.3% (7.3%) (8.1%)

RE/MAX Holdings, Inc. $40.25 717 168 885 213 282 4.2x 3.1x 9.1x 8.3x 9.8% 32.5% 45.6% 37.8%


Mean 2.3x 1.8x 8.3x 18.0x 63% 35% 4% 6%

Median 2.1x 1.6x 8.3x 8.3x 32% 32% (4%) 2%


Stock Trading Metrics Operating Metrics

Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin

Company 04/22/19 Value Debt Value CY18A CY19E CY18A CY19E CY18A CY19E 17A/18A 18A/19E CY18A CY19E

2424Source: Capital IQ.“NM” signifies multiple >40x.

APPENDIXReal Estate Technology Ecosystem (cont’d)


CBRE Group, Inc. $50.51 $16,622 $2,323 $18,945 $21,340 $22,971 0.9x 0.8x 12.0x 9.4x 14.6% 7.6% 7.4% 8.8%

Colliers International Group Inc. $68.93 2,714 545 3,259 2,825 3,111 1.2x 1.0x 10.8x 8.7x 16.0% 10.1% 10.7% 12.0%

Cushman & Wakefield plc $18.48 4,003 1,814 5,817 8,220 8,959 0.7x 0.6x 19.2x 8.1x 18.7% 9.0% 3.7% 8.1%

Jones Lang LaSalle Incorporated $155.99 7,135 525 7,660 9,090 9,448 0.8x 0.8x 7.9x 8.2x 14.1% 3.9% 10.7% 9.8%

Newmark Group, Inc. $8.32 1,482 1,339 2,821 1,865 2,227 1.5x 1.3x 8.8x 4.9x 19.4% 19.4% 17.3% 26.0%

Savills plc $11.96 1,628 (94) 1,534 2,245 2,303 0.7x 0.7x 8.0x 7.7x 3.8% 2.6% 8.5% 8.7%

Marcus & Millichap, Inc. $42.21 1,647 (344) 1,303 747 845 1.7x 1.5x 11.0x 10.3x 3.8% 13.1% 15.9% 15.0%


Mean 1.1x 1.0x 11.1x 8.2x 0.1x 0.1x 0.1x 0.1x

Median 0.9x 0.8x 10.8x 8.2x 0.1x 0.1x 0.1x 0.1x


Fidelity National Financial, Inc. $38.65 $10,642 ($481) $10,161 $5,088 $7,491 2.0x 1.4x 10.4x 9.3x (33.6%) 47.2% 19.1% 14.6%

First American Financial Corporation $55.41 6,203 (695) 5,508 5,802 5,849 0.9x 0.9x 7.0x 6.3x 0.5% 0.8% 13.6% 15.0%

Radian Group Inc. $22.68 4,846 43 4,890 1,311 1,411 3.7x 3.5x 6.1x NM 7.4% 7.6% NA NA

Stewart Information Services Corporation $43.64 1,035 (69) 966 1,908 1,935 0.5x 0.5x 8.3x 7.0x (2.5%) 1.4% 6.1% 7.1%

Altisource Portfolio Solutions S.A. $23.85 389 242 631 838 782 0.8x 0.8x NM NM (11.0%) (6.7%) 0.3% 0.1%


Mean 1.6x 1.4x 7.9x 7.5x (8%) 10% 10% 9%

Median 0.9x 0.9x 7.6x 7.0x (2%) 1% 10% 11%


LendingTree, Inc. $372.56 $4,780 $271 $5,051 $765 $0 6.6x NM NM NM 23.8% (100.0%) 13.1% NA

Moneysupermarket.com Group PLC $4.72 2,530 (38) 2,492 453 503 5.5x 5.0x 16.7x 13.8x 1.7% 11.1% 33.0% 35.8%

QuinStreet, Inc. $13.51 673 (62) 610 446 488 1.4x 1.3x 23.3x 11.7x 33.0% 9.3% 5.9% 10.7%


Mean 4.5x 3.1x 20.0x 12.8x 20% (27%) 17% 23%

Median 5.5x 3.1x 20.0x 12.8x 24% 9% 13% 23%


Booking Holdings Inc. $1,844.17 $83,011 $2,390 $85,401 $14,527 $15,559 5.9x 5.5x 14.8x 14.2x 14.6% 7.1% 39.8% 38.6%

Expedia Group, Inc. $124.35 18,498 1,246 19,744 11,223 12,332 1.8x 1.6x 15.6x 8.8x 11.6% 9.9% 11.3% 18.1%

TripAdvisor, Inc. $51.86 7,164 (587) 6,577 1,615 1,737 4.1x 3.8x 27.7x 13.9x 3.8% 7.6% 14.7% 27.2%


Mean 3.9x 3.6x 19.4x 12.3x 10% 8% 22% 28%

Median 4.1x 3.8x 15.6x 13.9x 12% 8% 15% 27%





2525Source: Capital IQ.“NM” signifies multiple >40x.

APPENDIXReal Estate Technology Ecosystem (cont’d)

Broader Data

Experian plc $28.56 $25,733 $3,430 $29,163 $4,843 $5,024 6.0x 5.8x 17.6x 17.0x 6.0% 3.7% 34.3% 34.2%

TransUnion $70.70 13,240 3,845 17,085 2,317 2,610 7.4x 6.5x 20.8x 16.7x 19.8% 12.6% 35.4% 39.1%

Equifax Inc. $124.82 15,149 2,412 17,561 3,412 3,489 5.1x 5.0x 23.6x 14.8x 1.5% 2.3% 21.8% 34.0%

Moody's Corporation $188.09 35,513 3,864 39,377 4,443 4,662 8.9x 8.4x 18.7x 17.6x 5.7% 4.9% 47.5% 48.0%

Fair Isaac Corporation $280.25 8,147 752 8,899 1,062 1,147 8.4x 7.8x 36.0x 33.4x 12.4% 8.0% 23.2% 23.2%

Broader Data

Mean 7.2x 6.7x 23.3x 19.9x 9% 6% 32% 36%

Median 7.4x 6.5x 20.8x 17.0x 6% 5% 34% 34%





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