Lessen, a Scottsdale, AZ-based tech-enabled, end-to-end solution for outsourced real estate property services, acquired SMS Assist, a Chicago, IL and Phoenix, AZ-based facilities maintenance technology company.
Led by Michael Rothman, founder and chairman, SMS Assist enables service providers and property owners to work together by delivering transparency and control within the facilities maintenance industry. Retail stores, banks, restaurants, rental homes, and more make up the over 200,000 properties that use every day its technology platform, in-house subject matter experts and 24/7 support.
The transaction consists of both cash and stock, with Lessen raising approximately $500m in combined new debt and equity, in addition to SMS Assist stockholders exchanging a portion of SMS stock for Lessen stock, resulting in an increased combined company valuation of over $2 billion in enterprise value. Debt and equity investors who backed this transaction include Monroe Capital, Värde Partners and Koch Real Estate Investments. Additionally, clients who invested in the deal with Lessen include Invitation Homes and American Homes 4 Rent, among others.
The new, combined technology platform will allow the many service providers—from contractors, painters, plumbers to electricians and more—to act as one, performing work at a national level. This work will be overseen and inspected for quality by Lessen’s in-house project managers. The combined solution will help owners overcome skilled labor shortages, while simultaneously reducing administrative burden, providing efficiency and real-time project updates. Contractors and providers of all sizes are already joining Lessen and SMS Assist’s existing network of more than 25,000 professionals, allowing them to gain access to work and get paid rapidly with less expense to their business. This acquisition also provides Lessen with additional scale to enhance its materials sourcing and last-mile logistics capabilities to unlock key growth opportunities for clients and contractors. By merging, the two companies will serve a national footprint of approximately 250,000 residential and commercial properties and facilitate approximately 2.5 million repair and maintenance orders per year – in tandem with bolstering a broader range of property services.
Following the close of the transaction, Lessen’s McKee will continue to lead the newly combined company as CEO and serve as Chairman of the Board of Directors.
Led by Jay McKee, founder and CEO, Lessen is the premier provider of tech-enabled, end-to-end renovation, turn, and maintenance services for the residential real estate rental industry. Powered by its proprietary technology suite, local field project managers deploy and oversee a network of vetted service professionals in 40+ markets delivering consistency, quality and speed, at scale.
FinSMEs
15/01/2023