The small world of commercial real estate data just got a bit smaller.
Altus paid just under $200 million cash for Reonomy, which had raised about $128 million as of summer 2020 thanks to hefty investments from the likes of SoftBank, Bain Capital Ventures and Sapphire Ventures.
Mike Gordon, Altus’ CEO, highlighted Reonomy’s AI-powered data platform and dataset as key assets in the acquisition. Reonomy has claimed to hold specs on at least 50 million commercial buildings, information it uses to generate property data for investors and developers such as CBRE and Brookfield.
Altus’ CEO said the acquisition would allow the company to “not only look back at what happened and why, but look forward to machine learning informing us on what might happen next.”
Throughout the pandemic, top dogs in the market for CRE data teamed up to target an expanding market for up-to-date insights. Data firms Trepp and CompStak got together in June 2020, for example, on the heels of CoStar’s acquisition of Ten-X the month prior.
Reonomy co-founder Richard Sarkis, who passed the title of CEO down to board member Bill Okun early in the pandemic, said the acquisition fits with Reonomy’s founding mission — to bring greater transparency to commercial real estate.
The acquisition will help Altus grow its total addressable market and its revenue stream. Reonomy’s estimated recurring revenue for 2021 is expected to be $21 million.
Profits will take some time to catch up. Altus said its 2022 earnings would see little change but expects the acquisition to be “accretive” in 2023.