Harvest Partners brings MRI Software’s value to over $3 bln

TA Associates also invested new capital in the company out of newly raised TA Select Opportunities fund

Harvest Partners is joining TA Associates and GI Partners as an investor in MRI Software in a deal valued north of $3 billion, sources familiar with the deal told PE Hub.

The three firms will share equal governance of the company, a January 15 announcement disclosing Harvest’s investment said.

As part of the deal, TA Associates invested new capital in MRI out of TA Select Opportunities Fund, which takes minority positions in TA’s portfolio companies, the sources said. The fund closed on $1 billion in November 2019, the people said.

MRI, 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 in 2019, the people said.

With a top line growth rate of 10 percent, approximately 90 percent of MRI’s revenue is recurring, the sources said.

Harvest Partners has followed the company for a long time and preempted a formal sale process, which was set to kick off in the first quarter of 2020, the sources said.

PE Hub first reported MRI was exploring options in September 2019.

In 2009, Vista Equity acquired the company then known as Intuit Real Estate Solutions. Vista sold the company to GI Partners in 2015 for $450 million, the sources told PE Hub.

GI invested in the company through GI Partners Fund IV, a $2 billion fund raised in 2014.

GI sold half of MRI in May 2017 to TA. The company in the time since has completed 16 add-ons.

TA Associates, GI Partners, Harvest Partners, MRI Software and Vista Equity were not immediately available for comment.

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