Real Matters, a Canadian real estate technology platform, has raised $100 million (Canadian dollars) in common equity financing, and the funds will be used to usher the company’s software and field agent management services into the U.S.
“We are very pleased with the common share structure of this financing, which was supported by our strong revenue growth of 73 percent last year as well as our focus on continuing to scale profitably,” said Real Matters Chief Executive Officer Jason Smith in a press release. “We are excited to continue to execute on our growth strategy and look forward to coming to public markets in due course as we fund our expansion.”
Real Matters’ scope of services
Currently, Real Matters has 100,000 qualified, independent field agents who tackle important parts of the homebuying process, such as valuations, insurance inspections, title searches and mortgage closings.
“We currently do business with more than 60 of the top 100 lenders, and have won engagements with most of the nation’s top 10 lenders in the last 12 months,” said Smith. “As we continue to roll out these customers and drive innovation in lending and insurance, we can capture additional market share given the breadth of Real Matters’ products and services.”
Potential to become a top U.S. independent provider
Part of Real Matters’ expansion plan is the acquisition of U.S.-based Linear Title and Closing Ltd. (Linear) through Real Matters’ subsidiary, Solidifi.
Solidifi is in the process of purchasing Linear for U.S. $96 million. A portion of the $96 million (U.S. dollars) will be funded by the CA$100 million that Real Matters just received in common equity financing.
If the deal goes as planned, Real Matters will rise to become one of the top five independent providers of mortgage title and closing services in the U.S., and 95 percent of Real Matters’ revenue will come from their U.S. dealings. Furthermore, the company will absorb Linear’s employees in Buffalo, New York; Middletown, Rhode Island and Cincinnati.