The online marketplace hipages (ASX: HPG) has decided to expand its distribution footprint, announcing the acquisition of a 25% stake in Bricks + Agent, one of the leading property management platforms of Australia.
For its $ 6.25 million investment, hipages will be exposed to 360,000 Bricks + Agent users (with nearly 500,000 properties under management) and 21,000 transactions on its platform.
HPG also reported cross-selling and lead generation opportunities across the new user and commerce base.
The company’s shares rose about 6% in morning trading to $ 4, and have now doubled from March 2021 lows near $ 2.
$ 21 billion market a huge opportunity
“I have followed the progress of Bricks + Agent for several years and was truly impressed to see Rafael, Jon and their team develop a cutting edge technological solution that makes their clients’ lives easier by avoiding the headaches associated with them. to property management, ”hipages CEO and co-founder Roby Sharon-Zipser said.
“Bricks + Agent is a great cultural compromise for hipages and fits perfectly with our strategy of expanding into adjacent markets,” he said, adding that the $ 21 billion property management market was a “huge opportunity for us”.
“Having founded hipages 17 years ago and having learned my fair share of lessons along the way, I am delighted to partner with another company led by a founder to together achieve our ambitious goals. “
Integration of the planned platform
Bricks + Agent provides a technological solution to streamline the property maintenance process.
In this context, in forms a complementary, strategically aligned hipages offering, which connects more than 31,000 subscribed commercial businesses to residential and commercial consumers.
Bricks + Agent also has strategic partnerships with Australia’s leading providers of property management software including MRI, Property Tree and PropertyMe, as well as a premier client base of property management agencies.
Hipages CFO and COO Melissa Fahey will join the Bricks + Agent board, and the companies plan to integrate the platform along the way.
Changing the game of property management
Bricks + Agent CEO and co-founder Rafael Niesten said the company has reached a point where the time has come to accelerate growth plans to “seize the huge opportunity that lies ahead”.
“Being able to leverage the scale and expertise of a company run by a founder as hipages that has an entrepreneurial culture like ours is amazing, and we really can’t wait to work with Roby and the hipages team to continue. to be a game-changer in property management, ”he said.
Bricks + Agent is expected to post positive EBITDA in FY22, the company said.
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