Yesterday RealPage, Inc. (NASDAQ: RP ) announced it has bought Kigo, a European based vacation rental booking and channel management software platform headquartered in Barcelona. According to their press release, RealPage paid closing cash consideration of about $32 million along with a deferred cash payment of up to $5.5 million.
In January, RealPage acquired Bookt’s InstaManager, a similar vacation rental booking software for $14 million. With the acquisition of Kigo, RealPage further extends its vacation rental booking system internationally.
The acquisitions of Kigo and InstaManager demonstrate an increasing utilization of vacation rental software in Europe. However, the functionality in these platforms is still limited compared to the major software systems in the U.S.
By comparison, in 2010, HomeAway paid an estimated $27.1 million for Instant Software and an estimated $10.3 million for Escapia. Both acquisitions contributed to a synergy within the HomeAway business model. A $32+ million spend for Kigo following a $14 million purchase of Bookt’s InstaManager depicts an increased stand-alone valuation of software utilization in the global vacation rental marketplace.
Steve Winn, CEO of RealPage, commented, “We believe the vacation rental market offers significant growth for RealPage, and this acquisition helps expand our presence in Europe. Both Kigo and InstaManager offer tremendous opportunity by helping professional vacation rental managers increase the number of properties managed and the days per year utilized, resulting in revenue growth without adding to their staff.”
By Amy Hinote
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