SYDNEY, AUSTRALIA: Openn Negotiation Limited (ASX: OPN), a leading Australian property technology company, has announced the acquisition of Proffer Group Pty Ltd, a pioneering PropTech business.
This strategic acquisition is set to redefine the Australian real estate marketplace by enabling buyers to evaluate and place qualified offers on any residential property, irrespective of its listing status.
The integration of Proffer’s technology is expected to significantly enhance Openn’s current offerings, creating a robust lead generation system for real estate agents.
This synergy is projected to scale up the company’s revenue streams and amplify the value derived from its extensive data assets.
Peter Gibbons, Managing Director of Openn, expressed his enthusiasm about the acquisition: “The inclusion of Proffer under the Openn umbrella fortifies our market position, offering a holistic approach to property acquisition. This merger is poised to transform property transactions on a global scale, unlocking unprecedented growth opportunities.”
Sam Rettke, the incoming executive from Proffer, shared his optimism, stating, “The amalgamation of Proffer and Openn’s services addresses critical challenges in the industry, offering unique solutions across Australia and New Zealand. I am eager to collaborate with the Openn team to introduce this innovative platform to the market.”
Proffer’s cutting-edge platform allows users to search for properties using specific addresses or suburbs, providing comprehensive profiles supported by Automatic Valuation Methods from top-tier providers. The platform’s “Proffer” feature connects potential buyers with leading agents to facilitate transactions through the Openn platform, backed by identity verification through ConnectID.
As part of the acquisition agreement, Openn will issue 280 million fully paid ordinary shares to Proffer’s shareholders at $0.00475 per share, along with two tranches of 280 million performance shares.
These shares are contingent on revenue targets for the fiscal years 2024/25 and 2025/26 and are subject to shareholder approval and a 12-month escrow period. The issue price represents an 18.75% premium over the company’s previous entitlement offer.
This strategic move is set to position Openn as a frontrunner in the PropTech industry, driving innovation and offering comprehensive solutions to the real estate sector.