- What Altus Group is selling its global property tax business to Ryan, LLC for $700m
- Why Deal positions company to focus on its analytics business
- What next Proceeds will be used to pay down debt and pursue investments
Altus Group has agreed to sell its global property tax business to Ryan, LLC for $700m.
Ryan, a Mississauga-based tax services and software company, has also committed to a three-year, $15m Altus Market Insights subscription agreement.
Altus chief executive Jim Hannon said the transaction positions the firm to focus on its core analytics business.
“We are monetizing the value of our Property Tax business today so that we can invest in higher-value growth opportunities at a time when market demand for asset intelligence is accelerating and CRE investment activity is set to pick up. In addition to significantly transforming our Company, this transaction improves our financial and strategic flexibility to drive growth and return capital to our shareholders,” he said.
Net proceeds are expected to total approximately $600m. The Toronto-based firm intends to use the proceeds to pay down $328.6m of bank debt, pursue organic investments, restructure corporate operations, and expand the company’s share buyback program to $250m from about $72m.
The transaction is expected to close in the first half of next year.
