08:10 AM EDT, 07/09/2024 (MT Newswires) -- Altus Group ( ASGTF ) , a provider of asset and fund intelligence for commercial real estate, signed Tuesday a definitive agreement to sell its global Property Tax business to Ryan, LLC, a global tax services and software provider, for total cash consideration of C$700 million. In addition to the definitive agreement, Ryan has also committed to enter a C$15 million Altus Market Insights subscription agreement at the close of the transaction, with an initial three-year term of C$5 million per year.

Among highlights, Altus said the agreement will accelerate its transformation to a pure-play CRE software, data and analytics platform, and will enable it to drive high single-digit consolidated revenue growth for FY 2026, with expanding margins and increasing cash flows. It added the Analytics business unit will drive double-digit revenue growth and near 35% Adjusted EBITDA margin for FY 2026. Proceeds will fund investment in the Analytics business unit, a C$250 million share buyback program and pay down debt to target

"This transaction strategically positions Altus Group ( ASGTF ) to focus on the substantial growth opportunities in our core Analytics business unit to enhance revenue growth, expand margins, and increase cash flows," said Altus CEO Jim Hannon in a statement. "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."