GI Partners and TA Associates are exploring options for MRI Software, four sources told Buyouts.
GI and TA, which each own half of MRI Software, are considering alternatives for the company, including a complete exit, the people said. MRI Software could sell for $2.5 billion to $3.5 billion, the sources said.
The company has not engaged in formal discussions with potential buyers, one of the sources said. MRI received inbound offers from a few financial sponsors and strategics, the person said. CoStar and Global Payments are among the interested parties, a second source, part of the four, said.
Formal conversations are likely to take place in early 2020, the first person said. MRI has yet to hire a banker to oversee the process, the source said.
MRI Software, of Cleveland, Ohio, provides real estate and investment management software to real estate owners, investors and operators. Its products offer property-level management, accounting, investment modeling and analytics for the global commercial and residential markets.
The company generated nearly $300 million in revenue and $120 million Ebitda, the people said.
MRI has 90 percent of recurring revenue and is growing at a 10 percent pace, the first source said.
In 2009, Vista Equity acquired the company, then known as Intuit Real Estate Solutions. Vista sold the company to GI Partners in 2015. GI’s investment in the company came from its GI Partners Fund IV, a $2 billion fund raised in 2014.
GI sold half of MRI in May 2017 to TA Associates. Since TA’s investment, MRI Software has completed 14 add-ons.
Most recently, this summer, the company acquired Rockend, a provider of residential property solutions for the Australian and New Zealand proptech sector; ProLease, which offers lease administration, lease accounting, lease analysis and workplace management applications; and LEVERTON, an artificial intelligence-powered data extraction provider for real estate and corporate documents, among others.
Spokesperson for GI Partners declined to comment. TA Associates, MRI Software, CoStar and Global Payments did not return requests for comment before press time.
Action Item: View TA Associates’ latest from ADV.