Lessen Acquires Real Estate Tech Competitor SMS Assist for $950M
Lessen, a company that builds software to support commercial and residential real estate services, will acquire competitor SMS Assist, a facilities maintenance technology company, for $950mn.
Lessen, which is based in Scottsdale, AZ., will fund the acquisition with about $500mn in new debt and equity, in addition to SMS shareholders exchanging part of SMS stock for Lessen stock, bringing SMS’s valuation to over $2bn from $1bn in 2021.
Jay McKee, founder and CEO of Lessen will continue to lead the newly combined company as CEO and serve as Chairman of the Board of Directors.
The transaction was backed by Monroe Capital, Värde Partners and Koch Real Estate Investments. Clients who invested in the deal with Lessen include Invitation Homes and American Homes 4 Rent.
Evercore acted as the exclusive financial advisor, and Fenwick & West LLP acted as legal counsel to Lessen. J.P. Morgan Securities, LLC acted as financial advisor and Katten Muchin Rosenman, LLP as well as Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to SMS Assist.