Tribe Property Technologies Inc. (TSX-V:TRBE) has finalized its $13 million acquisition of DMSI, marking a significant milestone in its expansion strategy.
The acquisition encompasses three operational subsidiaries of DMSI - DMS Property Management Ltd., Del Management Solutions Inc., and Delcom Management Services Inc. - through Tribe's wholly-owned subsidiary, Tribe Management Inc.
The acquisition propels Tribe's proforma annualized revenue run-rate to over $31 million, substantially enhancing its profitability profile. Moreover, it significantly broadens Tribe's presence in both residential rental and commercial property management sectors.
Joseph Nakhla, CEO of Tribe, explained the rationale behind the deal.
“The synergies between our existing capabilities and DMSI's profitable, robust recurring business and established expertise offers a unique opportunity to transform the property management industry. This collaboration is particularly exciting as each of the DMSI operating companies bring a distinct and valuable portfolio to our rental management division.”
The completion of the acquisition follows the successful closure of a non-brokered private placement, raising nearly $3.7 million in funding.
Nakhla affirmed that this funding facilitated the acquisition and positions Tribe to pursue further growth initiatives throughout 2024.
Each of the DMSI operating companies brings distinct expertise to Tribe's portfolio - DMS Property specializes in multi-residential rental property management, Del Management contributes government contracts and project management services, while Delcom focuses on commercial management services.
Per the term sheet, Tribe Management acquired all issued and outstanding shares of DMSI for a total consideration of $13 million. The purchase price comprised $10 million in cash, subject to adjustment, and $3 million payable via promissory note.
Tribe financed the purchase price through cash reserves, utilization of the company's acquisition debt facility, and the proceeds from the financing.