- PropTech Group (PTG) has entered into an unconditional binding asset sale agreement with real estate company Harcourts International
- Under the agreement, the company has finalised its acquisition of Harcourts’ H1 customer relationship management (CRM) technology platform
- PropTech’s consideration will include an initial $300,000 in shares, plus a second conditional payment depending on an agreed recruitment milestone
- The agreement includes a strategic partnership, under which Harcourts will endorse PropTech’s VaultRE sales CRM in Australia and New Zealand
- PropTech Group is up 1.69 per cent and trading at 60 cents per share
PropTech Group (PTG) has entered into an unconditional binding asset sale agreement with real estate company Harcourts International.
Under the asset sale agreement, the company has finalised its acquisition of Harcourts’ H1 technology platform, along with associated goodwill and intellectual property. H1 is a full-service real estate sales customer relationships management (CRM) technology platform, which Harcourts developed over 20 years ago.
Currently, over 750 Harcourts franchise offices use H1 in order to operate their real estate businesses. More than 600 of these are used across Harcourts’ network in Australia and New Zealand.
The change of control for the H1 platform from Harcourts to PropTech took effect on March 31, 2021.
PropTech Group’s total consideration for the acquisition will be between $300,000 and $600,000, payable in company shares.
The initial consideration will consist of $300,000 in shares, payable on completion of the transaction at the 30-day volume-weighted average price. This amount will be used to offset Harcourts’ ongoing investment during the technology migration.
The other $300,000 in shares will be deferred conditional consideration, to be paid at the 30-day volume-weighted average price preceding the date of the deferred consideration payment.
The deferred consideration is conditional and will not be due if less than 80 per cent of Harcourts’ Australian and New Zealand franchise network migrate to the Proptech Group’s VaultRE CRM within an agreed timeframe.
Harcourts’ success in achieving this recruitment goal will be helped by a strategic partnership outlined in its agreement with PropTech Group. Under the agreement, Harcourts will exclusively endorse the PropTech Group’s VaultRE sales CRM to the Harcourts network in Australia and New Zealand.
PropTech Group’s Managing Director and CEO, Joe Hanna, expressed the company’s excitement at partnering with Harcourts International.
“We believe our suite of products is a perfect match. We look forward to working with Steve and his team to migrate their Australian and New Zealand offices to VaultRE,” he said.
“This transaction enhances the PropTech Group’s position as Australia and New Zealand’s leading provider of innovative solutions for real estate agents,” he added.
On market close for the long weekend, PropTech Group is up 1.69 per cent, trading at 60 cents per share.