VTS buys Rise Buildings for $100m
In a further sign of the growing consolidation among major proptech suppliers, VTS, the leasing and asset management platform, has agreed the acquisition of property operations specialist Rise Buildings.
With major clients including Blackstone, Hines and CIM Group, Rise’s technology generates data and analytics about how properties are used in order to create “a superior property experience”.
VTS said those insights will be critical during the Covid-19 recovery and beyond, particularly for landlords that need to reduce vacancies and ensure Covid compliance.
The deal, it said, would broaden its existing leasing, marketing and asset management platform and was part of the company’s goal to modernise “the entire asset experience” for landlords and tenants.
Rise’s technology integrates with in-place building management systems, access control and sensor systems within a building, providing a range of tools for access and visitor management, health and safety, property operations and tenant experience.
That gives landlords a greater ability to track users in the building and use data drawn from that to inform its management decisions.
Nick Romito, CEO of VTS, said: “In acquiring Rise, VTS will continue to expand and strengthen the value our customers already receive from our platform, with new capabilities that will be more critical than ever as landlords focus on renewing existing tenants and reducing vacancies in the coming months.
“By integrating Rise into the VTS offering, our aim is to redefine the category of tenant experience and provide landlords with a full-service platform that continues the journey of digitising the entire asset experience. After an extensive evaluation, we believe Rise has the right approach, technology, and team; our landlord customers agreed and welcomed the decision.”
As part of the acquisition, Prasan Kale, CEO and co-founder of Rise, will join VTS as managing director and oversee the strategic direction of Rise within the company.
VTS, which has more than 43,000 users, said it expects to integrate Rise into its global platform “at a future date”. Once it does, it will give customers a single platform for leasing, tenant engagement and building management activities.
Kale said: “We’ve long admired Nick and the VTS team, particularly for the way they’ve modernised our industry’s approach to leasing and asset management. Joining forces with VTS will give us the ability to accelerate the delivery of the best-in-class technology offerings landlords need now more than ever to emerge from Covid-19 unscathed.
“This combination positions us for future growth, and ensures tenants have the information and capabilities to return to work safely.”
The return to the office and the arising health and safety concerns have been a catalyst for a growing number of takeovers and partnerships around building and tenant management.
In recent days, VergeSense announced a global reseller deal with JLL to roll out its products, which collect real time data on how workspaces are used, while MRI announced its acquisition of WhosOnLocation.
More granular insight into how buildings are used has the potential to make them more efficient and effective, addressing a growing area of concern for both landlords and occupiers as they consider the role of the future office.
However, questions about privacy – what data landlords can and should collect – surface in discussions about analytics in buildings and will likely continue to be a source of debate within the industry.