Tribe Property Technologies Inc. (TSX-V:TRBE) announced it has agreed to acquire Meritus Group Management in a deal that will expand its presence in the Greater Toronto Area of Ontario.
The company said the acquisition of the property management firm, which has 5,000 homes under management, is part of its strategy to expand its national footprint and digital services. It takes Tribe’s national presence to eight offices, including five in British Columbia, one in Alberta and two in Ontario, including its new Meritus office in Greater Toronto.
"Meritus expands our management presence directly into Toronto where we have developed many real estate developer relationships through our pre and post-construction software,” Tribe CEO Josephn Nakhla commented in a statement.
“This move allows us to package our entire solution of construction software, property management software, property management services and digital marketplace for homeowners and residents for the thousands of managed communities in Greater Toronto."
Under the arm’s length transaction dated August 29, 2023, in exchange for all the outstanding shares in Meritus, Tribe has agreed to pay $1 million to its existing shareholders, including $50,000 in cash within five days of execution of the agreement, $450,000 in cash upon closing (subject to amendments), $200,000 in common shares of Tribe, and $300,000 by promissory note to be executed and delivered on closing.
"Our team is excited to be joining a like-minded company with shared values of innovation, industry education and operational efficiencies as key to modernizing the property management industry and improving the level of service we can all provide for our clients," Meritus founder and principal Dean McCabe added.
The transaction is expected at the end of September 2023 and is subject to receipt of the TSX Venture Exchange.
Tribe said it is anticipated that Meritus will continue to operate independently until mid-2024 at which time, McCabe and the rest of the Meritus team will formally join Tribe. McCabe will continue to lead Meritus.
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