Global software company makes unexpected play for REcolorado
MRI offered to buy the nation’s 16th-largest MLS — then upped its offer — and wants association members to consider it at a July 29 meeting about the sale.
The proposed sale of REcolorado continues to surprise, this time with the emergence of another potential buyer — one with global reach.
MRI Software submitted an "Indication of Interest" in purchasing REcolorado, saying in an email that "although the contents of the IOI are confidential, we feel that it will be very competitive." Then on Friday afternoon, MRI raised the stakes, saying that it had updated its offer to a higher (still undisclosed) price point.
This development comes after more than a month of drama, starting with the June 24 revelation that the owners of REcolorado — Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtor Association (SMDRA) — reached an agreement in principle to sell the nation's 16th-largest MLS to a private entity headed up by Joseph E. Burks, the president of Equity Title of Colorado.
In doing so, they passed on an offer from the MLS to become self-owned, generating industry-wide interest and for some, concern. Meanwhile, the association owners of REcolorado replaced its board, appointed an interim CEO, and denied profiting from the potential sale.
Who is MRI Software? MRI is the parent company of CTM eContracts, which is used by nearly 40,000 subscribers in Colorado. But MRI's reach extends well beyond Colorado, with the 50-plus-year-old company serving more than six million residential and commercial users around the world.
Adding to the intrigue is the fact that Burks — the man behind MAZL, the company REcolorado's owners intend to sell to — used to have an ownership stake in CTM. He was a "small shareholder," MRI said Friday, and currently has "no role or stake in MRI whatsoever."
Why is MRI doing this? The company told Real Estate News that it "knows how important REcolorado is to the local real estate community. An acquisition would ensure stability of REcolorado MLS, transparency to its members, full integration, and collaboration with local industry leaders."
MRI also said its bid for ownership does not involve any former REcolorado staffers.
What's next? There will be a meeting of DMAR and SMDRA members related to the sale of REcolorado on July 29. "We hope that the members will consider our Indication of Interest when they make their decision," MRI said.
MRI sent CTM eContracts users a heads up about its plans "to ensure all are informed and give a viable option to ensure the security and future of REcolorado."
Real Estate News has reached out to REcolorado, DMAR and SMDRA and will update this story if they provide comment.
A Denver-based Realtor's perspective: "At this point, this whole thing feels like a joke and like it could be sold to anyone, which means a company can take control of how information is shared and perpetuate their monopoly on contract software," said Bret Weinstein, founder and CEO of Guide Real Estate and a member of DMAR.
"In my opinion, this exposes the dark side of selling the MLS to private companies, Weinstein said. "It's not about finding the best fit or maintaining free, accessible, and reliable information for the public. Instead, it's turning into a money grab, and DMAR/SMDRA credibility is getting shot in this."