Ryan — a Dallas-based company that describes itself as the world’s largest business-specific tax software and services firm — announced Tuesday that it will acquire the property tax wing of Canadian commercial real estate software and services company Altus Group Limited.
The deal is worth $700 million in Canadian currency ($500 million in the U.S.) in addition to a Canadian commitment of $5 million per year for a three-year Altus Market Insights subscription, and will go into effect in early 2025 pending regulatory approval.
The purchase opens up a number of new markets for Ryan, including property tax services in the UK and broader access to American and Canadian companies. It also opens up access to Ryan’s services to Altus Group clients.
“This acquisition will provide Altus’ property tax clients and Ryan’s global clients with enhanced local expertise powered by industry-leading technology,” G. Brint Ryan, Ryan’s chairman and CEO, wrote in a statement. “Altus has built an impressive property tax business that is highly regarded as a trusted advisor in the industry, and we are confident our clients will enjoy many additional benefits from our combined platforms. We look forward to welcoming many talented Altus team members to the Ryan family.”
Altus Group’s property tax business is the latest acquisition in a long line of Ryan mergers across sectors ranging from severance tax and commercial real estate to tax credits, excise taxes and, of course, property tax.
Ryan said Altus Group’s property tax business generated $263 million in Canadian cash ($193 million in U.S.) in 2023 and the acquisition would create 975 new jobs worldwide. It adds substantial financial strength to Ryan, which already employs more than 4,800 people and works with more than 30,000 clients in more than 80 countries. The company is valued at $2.5 billion by 2022.
For Altus Group, the sale will allow the company to “focus resources on higher-growth Analytics” and improve “revenue predictability” and “earnings quality” due to lower costs and reduced debt.
“This transaction allows Altus Group to focus on substantial growth opportunities in our core Analytics business while ensuring our property tax clients will continue to be well-served by Ryan’s leading capabilities,” wrote Jim Hannon, Altus Group Chief Executive Officer.
Beyond its acquisitions, Ryan made headlines earlier this year as one of the first businesses to file a lawsuit challenging a Federal Trade Commission ruling that banned noncompete clauses, which are made between employers and employees to prevent workers from starting similar businesses or moving to competitors in the future. Ryan said the agreements, which affect about one in five Americans, protect intellectual property and that revoking them gives the government undue authority over private business decisions.
