Real estate technology start-ups VTS and Hightower have agreed to merge to form a company with a five billion square foot portfolio.
The firms, which both provide asset management services to commercial real estate firms, will integrate their products into one platform. Under the terms of the deal, Hightower will be absorbed into the VTS brand.
“We’re at a pivotal moment in commercial real estate, with the industry beginning to realize technology’s true potential. VTS and Hightower have earned the trust of the top institutional firms, driving significant adoption of both platforms across the industry,” said Nick Romito, the CEO and co-founder of VTS.
“With VTS and Hightower’s combined expertise, we can elevate our service offering and partner with customers to solve their most complicated problems in real estate. We’re broadening our vision to tackle even more ambitious industry challenges around the globe.”
“Our companies have a lot in common — we care deeply about the success of our customers and are committed to solving the industry’s most significant pain points,” added Brandon Weber, the co-founder and former CEO of Hightower.
“By joining forces, we’re combining the technical horsepower and industry expertise of two very strong teams. In the coming months, we’ll accelerate our product roadmap and, most importantly, work side-by-side with customers to ensure they have a lasting competitive advantage.”
The merger will result in a leadership shake-up with Romito remaining as CEO. Meanwhile, Weber will become VTS’ Chief Product Officer. He will also serve in the company’s board of directors with Ethan Kurzweil, who used to be on the board of Hightower.
Last month, Romito predicted consolidation in the real estate tech start-up space, something that has turned out to be correct, albeit with his involvement.
During a panel at the recent MIPIM PropTech Summit, he said that companies will buy competitors to expand their services. “Do you know how many requests I get to buy things?” he said at the time.
Founded in 2013, Hightower has thousands of customers from around the world using its platform, with enterprise customers including Vornado, CBRE, NGKF, Beacon Capital, Shorenstein and more.