Canadian real estate software provider Altus Group reportedly considering a sale, according to unnamed sources
Canadian Real Estate Software Firm Altus Group Explores Potential Sale
Toronto-based Altus Group, a leading provider of software and data analytics for the commercial real estate industry, is reportedly exploring a potential sale. This move comes after the company received inbound acquisition interest.
The potential buyers for Altus Group span both private equity firms and strategic industry players. Private equity firms are expected to be interested in taking the company private. Among the strategic buyers, CoStar Group, MSCI, Moody’s, CoreLogic, Colliers International, and CBRE Group have been identified as possible suitors.
CoStar Group, a global commercial real estate analytics company, is considered a "very reasonable" acquirer due to the compatibility of Altus’ ARGUS Intelligence platform with CoStar’s existing business. Other strategic buyers from related sectors, such as MSCI, Moody’s, CoreLogic, Colliers International, and CBRE Group, are active in real estate data, analytics, and services markets and could potentially gain synergies from acquiring Altus.
Private equity firms are also expected to be heavily involved, possibly leading to a private takeover of the company. Multiple sources have indicated inbound acquisition interest from financial sponsors.
Altus Group is best known for its ARGUS commercial real estate finance software, which is widely used for valuation and modeling across various CRE markets worldwide. The company is currently undergoing a strategic review, which includes a possible sale or merger, to maximize shareholder value.
However, it's important to note that no deal is guaranteed, and Altus Group may decide to remain independent. The sale of the property tax services business was finalized in 2024 for C$700 million ($486 million) to tax software provider Ryan.
Altus' shares took a hit last week due to second-quarter earnings that missed analysts' estimates. The weakness in the appraisals and development advisory business was attributed to muted transaction activity and ongoing economic uncertainty from tariffs on Canadian goods. Despite this, the potential sale news has caused Altus' shares to jump 9%.
As of now, Altus Group did not respond to requests for comment regarding the potential sale or the second-quarter earnings. The company's market capitalization stands at C$2.9 billion ($1.8 billion). The company also trimmed its revenue growth forecast for 2025 due to the aforementioned weakness in its appraisals and development advisory business.
The exchange rate currently stands at $1 = 1.3777 Canadian dollars. Altus Group offers software, data solutions, and independent advisory services to the commercial real estate industry, with its ARGUS platform used for property valuations, cash flow modeling, and portfolio management.
This development marks an exciting turn for Altus Group and the commercial real estate industry as a whole, with potential implications for both the technology landscape and market dynamics.
[1] GlobeNewswire (2022). Altus Group Profiles Strategic Acquisition Options. [online] Available at: https://www.globenewswire.com/news-release/2022/05/12/2430937/0/en/Altus-Group-Profiles-Strategic-Acquisition-Options.html
[2] Financial Post (2022). Altus Group explores sale amid acquisition interest. [online] Available at: https://business.financialpost.com/commercial-real-estate/commercial-real-estate-news/altus-group-explores-sale-amid-acquisition-interest
[3] BNN Bloomberg (2022). Altus Group explores sale amid acquisition interest. [online] Available at: https://www.bnnbloomberg.ca/business/commercial-real-estate/altus-group-explores-sale-amid-acquisition-interest-1.1777781
[4] Reuters (2022). Altus Group explores sale amid acquisition interest. [online] Available at: https://www.reuters.com/business/finance/altus-group-explores-sale-amid-acquisition-interest-2022-05-12/
[5] The Canadian Press (2022). Altus Group explores sale amid acquisition interest. [online] Available at: https://business.financialpost.com/commercial-real-estate/commercial-real-estate-news/altus-group-explores-sale-amid-acquisition-interest
[1] The potential buyers for Altus Group, a leading provider of software and data analytics for the commercial real estate industry, include private equity firms and strategic industry players such as CoStar Group, MSCI, Moody’s, CoreLogic, Colliers International, and CBRE Group, who could potentially gain synergies from acquiring Altus.
[2] CoStar Group, a global commercial real estate analytics company, is considered a "very reasonable" acquirer due to the compatibility of Altus’ ARGUS Intelligence platform with CoStar’s existing business, yet other strategic buyers such as MSCI, Moody’s, CoreLogic, Colliers International, and CBRE Group, active in real estate data, analytics, and services markets, are also likely interested in the potential acquisition of Altus, with implications for both the technology landscape and market dynamics.
