Tribe Property Technologies has agreed to acquire Toronto-based property management firm DMSI Holdings for $31 million.

The proposed deal is expected to close by June 1. Tribe is slated to make the acquisition through its wholly-owned subsidiary Tribe Management. If all goes according to plan, Tribe will also acquire DMSI subsidiaries DMS Property and Del Management Services and Delcom Management Services, which are also based in Toronto.

DMS Property specializes in multi-residential rental real estate management services, while Del provides government contracts and project management expertise. Delcom focuses on commercial management services.

Tribe and DMS announced the proposed acquisition in a news release.

“We are expecting to have over $31 million in annualized revenue run-rate upon closing of this acquisition, expanding the company’s footprint in residential rental and commercial property management and positioning us as one of the largest property management companies in the country,” said Joseph Nakhla, Tribe’s CEO.

The proposed acquisition is part of Tribe’s ongoing strategy to expand its residential management business and continue to expand the Vancouver-based company’s national footprint and digital services.

Tribe plans to finance the purchase with $10 million in cash on hand and $3 million payable by a non-interest-bearing promissory note. In conjunction with the acquisition, Tribe will conduct a non-brokered private placement of up to 6.7 million units in the company.

Each unit will consist of one common share and a half-share purchase warrant based on a price of $0.82 per share within five years of the financing’s closing deal. Toronto-based PROPELR, which is related party to Tribe, will lead the financing by subscribing for 4.6 million units for gross proceeds of $2.4 million.

DMSI operators also plan to participate in the financing, with the net proceeds being used to satisfy the purchase price.

 Photo: Tribe