Lessen, a real estate property services platform, has acquired SMS Assist, a facilities maintenance technology company, in a cash and stock deal, to bolster its property services in the US.

The transaction is said to create a combined entity with an enterprise value of more than $2 billion.

In addition, Lessen will raise around $500 million in combined new debt and equity while SMS Assist stockholders exchange a portion of its stock for the former’s stock.

The combined entity will have a national footprint of around 250,000 residential and commercial properties and enable nearly 2.5 million repair and maintenance orders annually.

The new real estate technology platform is anticipated to enable contractors, plumbers, painters, electricians, and others to act as one and execute work at a national level.

With the acquisition, Lessen anticipates to address real estate problems and offer a scalable, tech-enabled, business solution for residential and commercial services.

Jay McKee — Lessen founder and CEO said: “This deal demonstrates the increasing demand within the underpenetrated, $330 billion addressable North American property services market for a unified, extensible delivery platform that provides transparency, efficiency and data-driven insights for the entire real estate ecosystem including investors, owners, managers and service providers.”

In addition, Lessen anticipates to increase its materials sourcing and last-mile logistics expertise to open key growth opportunities for contractors and clients.

The deal is backed by debt and equity investors, namely Monroe Capital, Koch Real Estate Investments, and Värde Partners.

In addition, clients Invitation Homes and American Homes 4 Rent have also invested in the deal.

SMS Assist with more than 200,000 properties, has offices in Chicago, Illinois and Phoenix, Arizona.

  Jay McKee, Koch Real Estate Investments, Lessen, Monroe Capital, Real estate industry news, SMS Assist, USA, Värde Partners