Altus Group Doubles its UK Business Rates Practice Through Acquisition of CVS
TORONTO & LONDON (November 2, 2017) – Altus Group Limited (ʺAltus Groupʺ or “the Company”) (TSX: AIF), a global provider of commercial real estate services, software and data solutions, announced today that it has doubled its business rates practice in the UK through the acquisition of CVS (Commercial Valuers & Surveyors) Limited (“CVS”) for £36.3 million (approximately C$61.8 million). CVS is a privately-owned property tax service provider that specializes in business rates advisory services.
The acquisition has a number of key benefits for Altus Group, including:
- Significantly expands the Company’s market share in the UK and positions Altus Group as the country’s leading business rates advisor based on volume of appeals filed;
- Adds further strength to the Company’s business rates expertise with the addition of approximately 230 professionals based in London, Manchester and Bristol, bringing the UK practice to over 400 people;
- Positions Altus Group for further growth in the UK market, and especially for the new five-year business rates cycle following the 2017 revaluation; and
- Adds further scale to and complements Altus Group’s data on comparable property information, giving the Company a greater competitive advantage to better serve clients in business rates appeals and lease negotiations.
“The acquisition of CVS clearly underlines our ambition to grow our business in the UK, a market which we believe is extremely important and strategic to our growth. Bringing CVS under the Altus Group brand more than doubles our business rates practice in the UK, while significantly broadening our scale, talent resources and market share in the country,” said Robert Courteau, Chief Executive Officer of Altus Group. “It positions us well to capitalize on the growth opportunity presented by the rates revaluation that took place earlier this year and the new five-year revaluation cycle that commenced with it. The combination of our comprehensive data on joint property information will also better position us to serve our clients in appeals and lease negotiations while supporting our ongoing initiatives to modernize our offerings with data and technology.”
Operating for over 17 years, CVS has gained substantial market share in the UK property market and is widely recognized as the largest provider of business rates advisory services based on the volume of appeals. It specializes in tax representation for all types of commercial properties including office, retail and industrial bulk classes. CVS’s primary services include business rates reduction (reducing property taxes for businesses and other organizations that occupy commercial premises). CVS’s team of approximately 230 professionals will form part of the Company’s UK Property Tax division, strengthening its business rates expertise.
“Altus Group’s well regarded market position and CVS’s large and diverse client base are highly complementary. This combination will significantly strengthen our value proposition for clients, while providing a strong platform that will allow us to grow further,” commented Alex Probyn, president of the UK business rates division at Altus Group.
The cost of this acquisition was £36.3 million (approximately C$61.8 million). Altus Group paid a total of £30.3 million (approximately C$51.6 million) in cash on closing with an additional £6.0 million (approximately C$10.2 million) payable two years after closing, subject to certain conditions being met. On closing, £25.3 million (approximately C$43.1 million) was from cash on hand and £5.0 (approximately C$8.5 million) was drawn from the revolving term facility. The acquisition is expected to be financially accretive over the course of the new revaluation cycle.
The Company will discuss the acquisition on its third quarter results earnings conference call and webcast scheduled for later today, November 2, 2017, at 5 pm EST. The live and archived webcast can be accessed under the Investor Relations tab on www.altusgroup.com and the dial-in number for the live call is 1- 866-223-7781 (toll-free) or 416-340-2216 (Toronto area).
About Altus Group Limited
Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants. Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the TSX under the symbol AIF.
For more information on Altus Group, please visit: www.altusgroup.com.
Forward Looking Information
Forward Looking Information
Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes information that relates to, among other things, the expected benefits from the acquisition of CVS, objectives, strategies and intentions, and future financial and operating performance and prospects. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “plan”, “would”, “could” and other similar terminology. All of the forward-looking information in this press release is qualified by this cautionary statement. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Altus Group at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. Please consult Altus Group’s most recent regulatory filings on SEDAR for more information on the Company’s forward-looking statements.
Camilla BartosiewiczBartosiewiczVice President, Investor Relations