11 May 2010
RP Data Limited has today agreed terms for the acquisition of ValEx Group Pty Ltd (ValEx) and the Valuation Management Software (VMS) division of Sandstone Technology.
“This fulfils a vision shared by both RP Data and ValEx to create a single technology hub for the mortgage finance and property valuation industries, delivering market-leading valuation management, data analytics and risk solutions” said Graham Mirabito, CEO of RP Data.
Valex Group is a leading provider of valuation management solutions via the Valuation Exchange (ValEx) platform. ValEx currently services approximately 8 financial institutions including CBA and NAB Broker, on whose behalf ValEx manages electronic and physical inspection valuations through a Panel of Australia‟s leading valuation firms. The Valex Group is currently 70% owned by ANZ and ANZ Capital managed investment funds and 30% by management and non management shareholders. The Valex Group also owns one of the leading valuation firms in Australia, Megaw & Hogg National Valuers Pty Ltd (MHNV).
Sandstone Technology’s VMS business is a leading mortgage finance valuation management software platform currently deployed to 6 financial institutions, including ANZ and Westpac, which self-manage their electronic and physical inspection valuations using the VMS tool. VMS is a division of Sandstone Technology Pty Ltd, a leading provider of mobile banking, internet banking and loan origination software solutions in Australia, Asia and the UK.
RP Data already owns a valuation management platform, ValuersLink, as well as being a leading provider of electronic valuations. In addition, RP Data is the leading supplier of commercial and residential property information services throughout Australia and New Zealand, with subscription clients including real estate agents, valuers, property developers, financial institutions and government departments.
By integrating ValEx, VMS and ValuersLink into one technology hub, supported by RP Data‟s property information services and data analytics, clients from all related industry sectors and valuers will now have access to an unprecedented range of property risk solutions.
“These acquisitions will increase RP Data‟s valuation transaction services volume from 100,000 per annum to more than 1 million per annum, creating a rich source of data to assist clients and valuers in quality, compliance and risk analysis” Mr Mirabito said.
RP Data will combine these technologies into a new Enterprise Risk Solutions (ERS) division led by Andrew Robertson, the current CEO of Valex Group. While RP Data expects some operational synergies, the focus will be on the development and growth of existing and new services to the mortgage finance and related industries in Australia and New Zealand.
“In the post-GFC era where risk management is a key strategic focus for most mortgage finance clients, it is very exciting to be able to now offer such a comprehensive range of valuation management and risk solutions from a single technology hub” said Andrew Robertson, current CEO of ValEx Group.
“Our business philosophy has always been client focused, with a strong emphasis on customer service, and we look forward to establishing the same values in the new RP Data ERS division. We will work closely with each client to tailor the valuation management and risk solution that best meets their business requirements. Importantly, no client will have to change the service they currently receive – but all clients will have the option to take on any additional services that add value to their business” Mr Robertson said.
“Another core ValEx principle was valuation quality and compliance, which will now be greatly enhanced by the greater pool of valuation data captured by the ERS division, and by RP Data‟s suite of data analytics products. In addition, RP Data‟s strategic relationship with First American Core Logic provides access to a broad range of specialized intellectual property in this critical area, enabling us to develop new solutions for the Australian and New Zealand markets.”
“It will also be important for the new ERS division to act as a hub for all valuation service providers, both electronic and physical inspection. The hub will be “agnostic” and provide the service that the client‟s business rules demand, from whichever preferred service provider the client chooses. Just as ValEx has always offered its clients their own choice of Panel Valuers, the ERS division will be made available to all electronic valuation providers, including competitors to RP Data” Mr Robertson said.
To ensure a seamless "business as usual" transition post acquisition, ValEx will continue to operate from its Operations Centre in Adelaide, while the VMS business will relocate to RP Data‟s Sydney office at 70 Pitt Street Sydney. All key people will be retained to ensure continuity of customer relationships.
Bob Hall CEO Sandstone Technologies group said. “We have been a significant player in the banking platform space for over 10 years and our VMS platform was developed as an additional value added platform in response to our clients requests. We had taken the platform as far as we could without access to data and analytics. With RP Data and the Valex Group we are certain the platform will realise its full potential. Ultimately this new group within RP Data will change the way the industry works. We are keen to be a part of the future with RP Data and the ongoing alliance agreement will see us leveraging all the capability of RP Data for our core activities with our banking customers ”
Graham Mirabito, the CEO of RP Data, stated: “This is an exciting time for RP Data and the mortgage finance and valuation industries in Australia. The Global Financial Crisis has increased the need for quality data, analytics and secure platforms. Best practice trends overseas show an evolution to integrated platforms for valuation and risk management providing more data and analytics on more and more transactions especially on full inspection valuations. RP Data will now be a one stop shop for the mortgage finance community and a natural hub for the valuation services industry.”
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