Tribe Property Technologies Inc said it has agreed to acquire Southview Property Management Inc, an arm's-length party, strengthening Tribe's presence in the greater Vancouver region of British Columbia.
"We are looking forward to welcoming the Southview team and their wealth of experience in both strata and rental management into the Tribe family," said Joseph Nakhla, CEO of Tribe in a statement.
"Southview's Richmond office expands our presence in the Lower Mainland of British Columbia, creating additional revenue streams while bringing efficiencies through the digitization of their communities," he added.
The acquisition is a continuation of Tribe's strategy that identifies optimal operational opportunities and continues to expand the company's local footprint and digital services. The companies signed the agreement on May 12, 2022.
READ: Tribe reports record revenue and gross margin for fiscal 2021 after strong 4Q
"Our team is excited to be joining a customer-focused company that is solving traditional property management challenges with new technologies and operational efficiencies that will improve the level of service we can provide for our clients," said Southview principal, Jeff Wolrige.
In exchange for all of the outstanding share capital of Southview, Tribe has agreed to pay $600,000 to the existing shareholders of Southview, payable as follows:
(a) $200,000 payable on the closing date
(b) $300,000 payable in common shares of Tribe
(c) $100,000 payable on the date that is 90 days following the closing date subject to certain adjustments based on revenue and customer contracts
The issue price of the consideration shares will be equal to the twenty-day weighted average closing price immediately prior to completion of the acquisition.
All consideration shares issued will be subject to a voluntary lock-up from which one-third of the consideration shares will be released every six months for a period of eighteen months.
Tribe has the option to reduce the consideration shares by 50% in exchange for a cash payment of $150,000 at closing. Tribe will assume Southview's $40,000 Canadian Emergency Business Account loan as part of this transaction.
Closing of the acquisition is expected to occur on or about June 30, 2022, and is subject to receipt of TSX Venture Exchange approval and satisfaction of customary conditions and documentation. Upon closing, Southview principal Jeff Wolrige will join Tribe as a senior community manager.
No finder's fees were paid or payable in conjunction with the transaction.
Tribe is a property technology company that is disrupting the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe's integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers.
The company seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations.
Tribe's platform decreases customer acquisition costs, increases retention and allows for the addition of value-added products and services through the platform.
Contact the author at jon.hopkins@proactiveinvestors.com