RealPage Shares Dropped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of property management software company RealPage (NAS: RP) fell 14% today after the company announced an acquisition.

So what: RealPage is buying privately held Multifamily Technology Solutions for $74.4 million, net cash acquired. The deal will be paid for with $63.6 million in cash and $10.8 million in stock. Multifamily Technology lists rental properties under the name MyNewPlace.

Now what: The deal seems to fit with RealPage's business and there are some strategic advantages of combining the businesses. Obviously the market doesn't agree and is beating up shares of RealPage in a day stocks are trading mostly higher. RealPage is barely profitable, but it is growing quickly and I think this could give shares a boost long-term.

Interested in more info on RealPage? Add it to your watchlist.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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