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Proactive Investors - Tribe Property Technologies Inc (TSXV:TRBE) announced that it has completed the acquisition of Toronto-based property management firm Meritus Group Management.
The deal supports the company’s strategy of increasing its geographic footprint in Canada and beyond, Tribe said. The company now has eight offices across Canada, with five in British Columbia, one in Alberta, and two in Ontario.
"We are thrilled to welcome the Meritus team under the Tribe umbrella as we expand our network of successful property management service providers across the country," Tribe CEO Joseph Nakhla said in a statement.
"This acquisition marks a significant milestone for the company, as we expand our presence directly into the largest metropolitan area in Canada, giving a boost to our revenue and adding more than 5,000 homes under management."
Meritus founder Dean McCabe commented: "I have been looking for the right partner – a company that shares similar goals of modernizing the property management industry and improving the level of service we can all provide for our clients with a focus on innovation, education and operational efficiencies. Tribe was the obvious choice.”
Tribe paid $1 million in cash and common shares to Meritus’ shareholders. This consisted of $50,000 in cash as an initial deposit, $350,000 in cash subject to a working capital adjustment paid on closing of $200,000, 143,678 shares at a deemed issue price of $0.696 per share and equal to $100,000, and $300,000 by way of promissory note.
It has agreed to increase the purchase price by $175,500 payable in shares at an issue price of $0.696 per share should certain future revenue targets be met.
Tribe is a property technology company that is disrupting the traditional property management industry.