The Australian - PEXA back on radar for private equity including Thoma Bravo | The Australian

Property Exchange Australia is once again back in focus for technology investors, with US private equity firm Thoma Bravo said to have been assessing the business for a potential takeover play.

It is understood PEXA has been on Thoma Bravo’s radar as executives look at a range of opportunities in Australia. It has also been eyeing other targets such as Iress.

Pexa’s share price has come off the boil of late, down to $11.42, with its market value at $2.1bn after the stock traded over $13 a month ago. When Pexa listed in 2021, its share price was around $17.

Thoma Bravo is understood to count Jarden as its adviser as it assesses a number of tech companies listed on the local market.

The digital real estate settlements business PEXA has caught the attention of suitors off and on over the years, with the company receiving calls from investment bankers on behalf of clients interested in an acquisition of the business.

A year ago when buyers were around the hoop, it was considered expensive at over $13. When a sale process was run for a stake in PEXA during 2021, there were 17 parties that signed nondisclosure agreements to enter a data room to buy the assets.

Kohlberg Kravis Roberts offered more than $3bn for the business, including debt, but it was instead listed with a $3.3bn value.

PEXA was also earmarked for a float in 2018 before it was purchased by Link Administration and its backers, its value was $1.8bn or $2.2bn including debt.

PEXA could be considered a monopoly asset, largely dominating the online property conveyancing market, and private equity firms and infrastructure investors are always on the lookout for such opportunities.

Along with Thoma Bravo, groups such as KKR and EQT Infrastructure are the typical candidates to move on such companies.