- PropTech Group has signed back-to-back deals in the last two days.
- The Company signed a deal to acquire the web designing player, Website Blue for up to A$1.5 million.
- Yesterday on 22 February, PropTech announced the renewal of a contract with Ray White Group by signing a two-year agreement.
Sydney-based PropTech Group Limited (ASX:PTG), an ASX-listed company that provides world-class online tools and data that assist people to create wealth via property investment, has noted growth in its share price following two crucial announcements in two days.
At AEDT 12:42 PM, PTG shares were trading at A$0.435, up 8.749% from the previous close. The Company’s market cap stands at A$48.52 million.
Let’s look at the two announcements in detail:
Acquisition of Website Blue
On 23 February 2021, PropTech Group signed a deal to acquire a real estate website and marketing company, Website Blue. As a part of PTG, Website Blue would increase the average revenue per agent, improve the number of customers, and support product innovation throughout the entire PropTech Group.
Website Blue, founded in 2005, is a full-service professional web design & development firm that provides top marketing solutions to ANZ real estate agencies. Presently, the Company offers services to 2,400 real estate agencies throughout Australia and New Zealand.
In 2020, the websites that Website Blue powered provided 1.5 million vendors & landlord leads to real estate organisations.
Transaction details to Acquire Website Blue
The total consideration to acquire Website Blue is up to A$1.5 million. Payment would be made through cash and PTG shares.
- Initial consideration would be paid on the conclusion of A$750k payment. The payment would be made partly in cash (A$150k) and the rest in PTG shares (A$600k) at the 30-day VWAP.
- Post 12 months of completion, PTG would pay a deferred consideration of A$375k.
- The remaining A$375k would be paid 24 months post-completion.
Agreement with Ray White Group
A day earlier, on 22 February, the Group signed a deal with Ray White Group that would ensure that Ray White Group remains PTG’s largest customer and move its franchisees’ sales CRM systems from MyDesktop to VaultRE.
Ray White Group is recognised as the largest real estate franchise group in Australia and New Zealand, with nearly 1,000 offices. Ray White Group has been using the MyDesktop for a very long time. Post the conclusion of the review process it would migrate its franchisee sales CRM systems to VaultRE.