Real estate information provider Real Matters Corp. is nearing an acquisition valued at roughly $100-million (U.S.), according to sources familiar with the matter.
Sources say the privately held technology firm will buy a U.S.-based real estate deals information provider that operates in the same sector as Real Matters.
On Wednesday, Markham, Ont.-based Real Matters closed on its latest financing round, which saw it issue $75-million in subscription receipts to institutional investors, according to sources close to the company. These funds were earmarked for the upcoming acquisition. (The receipts are convertible to common shares only after the firm announces the upcoming deal). BMO Nesbitt Burns Inc. and Infor Financial Group Inc. underwrote the latest equity deal.
Real Matters has raised almost $200-million since its inception 12 years ago. The company has for the most part not followed the traditional venture capital financing model of raising money via preferred equity from venture capital firms and instead continued to issue common shares directly to Canadian institutional investors.
Earlier this month, The Globe and Mail reported that Real Matters, which has a valuation in the range of $600-million, is considering going public later this year, subject to the improvement of wider equity markets. Should Real Matters not proceed with an initial public offering this year, the latest financing deal allows for its investors to gain an additional 10-per-cent stake in the firm.
Real Matters provides a cloud-based platform called Redihive that allows U.S. financial institutions to gather mortgage appraisal information quickly and inexpensively using a network of independent appraisers and insurance inspectors. Among its customers are U.S. financial institutions. The company's annual revenue is said to be in excess of $100-million. Real Matters is run by financial technology veteran Jason Smith.
If market conditions improve, it could be a busy year for Canadian tech IPOs. Last year, health-care software provider PointClickCare filed for a public listing in Canada and the United States. Vancouver-based Vision Critical and online footwear retailer Shoes.com are also weighing IPOs this year.