Tribe Property Technologies Inc said it has completed the acquisition of Southview Property Management Inc, previously announced on May 12, 2022, further strengthening the company's property management services in the Greater Vancouver region of British Columbia.
"This latest acquisition is a continuation of Tribe's activities to identify great accretive assets that expand our footprint and support efficiencies through the digitization of the traditional property management space," said Joseph Nakhla, CEO of Tribe in a statement.
"We are pleased to welcome Southview's staff and clients into our fold and look forward to supporting their communities," he added.
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The company is at arms-length from Southview and its existing shareholders. Notable aspects of the acquisition are the expansion of Tribe's management of strata communities, and the addition of six employees. Southview principal Jeff Wolrige will continue as a senior community manager.
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:
- $350,000 cash consideration at closing;
- $150,000 satisfied through the issuance of 76,635 common shares of Tribe; and
- $100,000 payable 90 days following the closing date subject to certain adjustments based on revenue and customer contracts.
The issue price of the consideration shares was equal to the twenty-day weighted average closing price immediately prior to closing. All consideration shares are subject to a voluntary lock-up from which one-third will be released every six months for a period of eighteen months.
Southview repaid all of its outstanding debt including shareholder loans on closing. No finder's fees were paid or payable in conjunction with this 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.
Tribe 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