Ohio-based software company MRI Software is making the bid just days before MLS is sold to another buyer.
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The controversial planned sale of Colorado’s major MLS club became more complicated this week when another buyer unexpectedly emerged and made a “very competitive” takeover bid.
The proposal comes from Ohio-based MRI Software, parent company of contract software provider CTM Contracts, and is aimed at acquiring REColorado. The multiple listing service bills itself as the 16th largest MLS in the U.S. The MLS made headlines last month with news that its owners, the Denver Metro Association of Realtors (DMAR) and the South Metro Denver Association of Realtors (SMDRA), planned to sell it to a newly formed company.
The proposed sale drew significant backlash, and amid the controversy, DMAR and SMDRA ultimately removed at least one MLS board member who had publicly criticized the deal.
John Ensign
John Ensign, MRI Software’s North American president and managing director, said in a statement Thursday that the company made the acquisition offer “after learning of the public announcement of the potential sale of REColorado.”
“We have partnered and collaborated with REColorado for many years and know that it is a valuable asset to Colorado’s real estate industry,” Ensign continued. “The purpose of the proposed acquisition is to support and improve our MLS and contracting platform while securing REColorado’s future.”
The statement went on to explain that details of MRI Software’s proposal were confidential, but added that Ensign “believes it will be highly competitive.” It also called on DMAR and SMDRA to take the proposal into consideration when voting on the announced deal later this month.
The previously announced deal was shrouded in controversy from the moment it hit the news, in part because a group of industry players, including former REColorado vice chair Shelley Vincent, had previously tried to buy MLS. Vincent told Inman in June that industry players were surprised by the news that DMAR and SMDRA were planning to sell to another company.
Initially, there was also little information about the potential buyer. REColorado’s owners eventually revealed that the buyer was Joseph E. Burks, president of Equity Title of Colorado, and his newly formed company, MAZL, but questions remain about Burks and the sale.
Inman continues to receive unsolicited comments from REColorado users, all of which are critical of the proposed sale to MAZL. Just Thursday, for example, Guide Real Estate founder Bret Weinstein said, “This whole thing feels like a joke,” and that it “exposes the dark side of selling an MLS to a private company.”
It remains to be seen whether MRI Software’s new proposal is likely to be adopted, but Inman has reached out to DMAR and SMDRA for comment and will update this article if they respond.
See MRI Software’s full statement here:
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