Software giant Altus acquires real estate data firm Reonomy for $200M

Buyer secures access to data on 50 million properties

National /
Nov.November 12, 2021 08:53 AM
Altus CEO Mike Gordon and Reonomy's Richard Sarkis (Altus, Reonomy)

Altus CEO Mike Gordon and Reonomy’s Richard Sarkis (Altus, Reonomy)

The small world of commercial real estate data just got a bit smaller.

Altus Group, an industry software provider, is expected to close today on the acquisition of Reonomy, the 8-year-old real estate data startup turned heavy hitter.

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.





    Related Articles

    arrow_forward_ios
    Citadel's Ken Griffin (Getty, iStock)
    Griffin’s Citadel debates Chicago exit due to crime
    Griffin’s Citadel debates Chicago exit due to crime
    Preservation Chicago's Ward Miller and Century Building (Tdl1060/ CC BY-SA 4.0 via Wikimedia Commons, LinkedIn)
    Preservationists push to save Chicago’s Century, Consumers towers
    Preservationists push to save Chicago’s Century, Consumers towers
    A photo illustration of 105 West Adams Street (top right) and the Chatham Village Square shopping center (bottom) (LoopNet, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Chicago landlord Tadros files for bankruptcy with $22M mortgage at stake
    Chicago landlord Tadros files for bankruptcy with $22M mortgage at stake
    Watermark Lodging Trust ceo Michael G. Medzigian and Brookfield Managing Partner Lowell Baron (Watermark Lodging Trust, Brookfield)
    Brookfield buys Chicago REIT Watermark for $3.8B
    Brookfield buys Chicago REIT Watermark for $3.8B
    Baxter CEO ​José (Joe) E. Almeida and 1 Baxter Parkway, Deerfield, IL (Google Maps, Baxter)
    Medical products company lists 101-acre suburban Chicago office campus
    Medical products company lists 101-acre suburban Chicago office campus
    5200 West Roosevelt Road in Chicago, Clear Height Properties CEO Dominic Sergi and 130 East Street Charles Road in Carol Stream (Google Maps, Clear Height)
    Amazon pullback, rising rates fail to cool Chicago industrial market
    Amazon pullback, rising rates fail to cool Chicago industrial market
    Cook County Land Bank Authority's Eleanor Gorski and 6300 South Cottage Grove Avenue (CCLBA, Google Maps)
    “Dystopian” Woodlawn bank to be preserved, restored
    “Dystopian” Woodlawn bank to be preserved, restored
    Jeff Shapack and 509 North Union Avenue, Chicago (Google Maps, iStock)
    Developer Shapack buys Chicago Salvation Army site for $25M
    Developer Shapack buys Chicago Salvation Army site for $25M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...