Two of UK’s biggest and most profitable proptechs reveal merger
PayProp and Reapit will continue as separate brands at first and then be integrated over time, The Neg is told.
Two of the UK’s biggest proptech names have merged, funded by a big US private equity firm, it has been announced.
Reapit and PayProp are joining forces and the move is being funded by a ‘substantial’ investment from Accel-KKR, which has already sunk millions into Reapit. It in turn bought PayProp earlier this year but has only now decided to merge the two businesses. The Neg also understands that the two firs will be integrated over time.
The announcement means customers of both firms will get access to the merged entities’ wider capabilities and have a single provider that delivers across sales, lettings, property management, client account management, and secure, automated payments.
PayProp reported annual revenues of £9.6 million earlier this year, while Reapit’s most recent accounts show a turnover of £19.3 million. Despite their different turnovers, both firms reported similar pre-tax profits of approximately £3 million.
Mark Armstrong, CEO of Reapit (pictured), says: “Our two companies are both highly oriented around service and customer success. Our combined path is clear: to lead and drive digital transformation of the property sector, which is a huge asset class.
“PayProp has a loyal customer base that benefits from efficient and secure payment, reconciliation and settlement.
“Many PayProp customers, I am sure, will be keen to discover the end-to-end functionality and support that Reapit offers.”
Inefficiencies
Johannes van Eeden, CEO, PayProp put the emphasis on growth opportunities. “Both of our companies have an excellent reputation for eliminating back-office inefficiencies and lowering administrative costs. Together, we will provide a premium end-to-end service with the goal of enabling our customers to do business more efficiently, remain compliant with the latest regulations, and grow profitably.”
The merger means the two brands will have customers in the UK but also eight other countries including the US, Canada, UAE, New Zealand, Denmark, Australia, Ireland and South Africa.
Park Durrett, MD at Accel-KKR (pictured) and a board member of both Reapit and PayProp, adds: “Reapit and PayProp coming together creates a major force in the PropTech sector and provides a springboard for further growth of the combined entity, which already has a significant footprint in four continents with considerably more than a million properties under management.”
