Real Estate

Ryan to Acquire Altus Group's Property Tax Business for $500M, Expands to UK

Ryan LLC to acquire Altus Group’s property tax business for $500M, expanding into UK market and enhancing data analytics.

By Tal Alexander

7/10, 12:24 EDT

Key Takeaway

  • Ryan LLC is acquiring Altus Group's property tax business for $500 million, expanding its client base in the U.S., Canada, and entering the UK market.
  • The acquisition includes a $5 million-a-year subscription to Altus Market Insights for three years, enhancing Ryan's data capabilities.
  • This deal is part of Ryan’s broader roll-up strategy and comes amid its legal battle with the FTC over non-compete clauses.

Ryan LLC Expands with Major Acquisition

Dallas-based Ryan LLC, the world's largest business-tax service provider, has announced a significant expansion through the acquisition of the property-tax segment of Toronto-based Altus Group Limited’s commercial real estate services. This $500 million deal, expected to close next year pending regulatory approval, will significantly broaden Ryan's client base in the U.S. and Canada and introduce the firm to the UK property tax market. The acquisition also includes a $5 million annual subscription to Altus Market Insights for three years, enhancing Ryan's data analytics capabilities.

Strategic Details of the Acquisition

The acquisition involves Altus Group’s property tax services and software offerings in Canada, the United Kingdom, and the United States. Altus Group’s property tax business generated CAD $263 million (approximately $193 million USD) in revenue last year and employs 975 workers globally. Ryan, valued at $2.5 billion and employing nearly 5,000 people, will integrate these new employees and services into its existing operations. This move is part of Ryan's ongoing roll-up strategy, which has seen the firm acquire numerous companies specializing in various tax segments.

Broader Market Implications

This acquisition is poised to have significant implications for the commercial real estate and property tax sectors. By integrating Altus Group’s property tax services, Ryan will enhance its local expertise and technological capabilities, including robust data analytics and PropTech software solutions. This expansion will not only benefit Ryan’s existing clients but also provide Altus Group’s clients with access to Ryan’s comprehensive tax services across more than 50 global tax disciplines. The deal underscores the growing importance of data-driven insights and advanced technology in the property tax industry.

Ryan's Strategic Vision and Market Position

Ryan's CEO, G. Brint Ryan, emphasized the strategic fit of Altus Group’s property tax business within Ryan’s broader service offerings. He highlighted the acquisition as a means to bolster local expertise and provide enhanced client service through industry-leading technologies. This move aligns with Ryan’s long-term vision of expanding its market presence and capabilities, particularly in Europe. The acquisition also reflects Ryan’s commitment to maintaining a competitive edge through continuous innovation and superior client service.

Challenges and Legal Context

The acquisition comes amid Ryan’s ongoing legal battle with the Federal Trade Commission (FTC) over the agency’s move to prohibit non-compete clauses in employment contracts. Ryan argues that these clauses are essential for protecting intellectual property and fostering innovation. This legal context adds a layer of complexity to the acquisition, as regulatory scrutiny and legal challenges could impact the deal’s finalization and future operations.