IBS gets more financing

Real Estate Weekly, Jan 2, 2002

Integrated Business Systems (IBS) has announced the completion of financing that will enable it to deliver its property management and accounting systems software applications as a web-based/web-enabled product. A consortium of major real estate players is behind the funding of this multi-million dollar project - including Mack-Cali Realty Corporation, Vornado Realty Trust, Reckson Associates Realty Corp., Jack Resnick & Sons Inc. and The Feil Organization - all of which are IBS users.

Based in Fairfield, N.J., IBS is recognized in the New York metropolitan area as a premier provider of automated property management and accounting systems. Its software, currently a network-based system, contains more than 1,700 programs that address virtually all property management, accounting and construction management tasks. With a 22-year development history, the IBS package includes more than 5 million lines of source code and is used by the region's most prominent real estate companies.

"By web-enabling the IBS software, we will be able to lead in the new generation of Internet-based property management systems, potentially delivering our applications via an Intranet or via an Application Service Provider (ASP) model," noted Robert Entin, IBS president. "It will ultimately allow us to establish real-time connectivity with real estate transaction portals as they emerge."

The financing will be used primarily for research and development. More specifics on the new IBS technology and growth plan will be formally announced in the coming months. IBS examined a number of options for its technology future, specifically focusing on how to leverage opportunities afforded by new Internet technologies. Ultimately, the organization sought a course that will enable it to grow from a regional to a national player.

"We have achieved great success in our geographical market niche, servicing more than 120 real estate owners and managers that control more than 500 million square feet of residential and commercial property," noted Entin. "Our reputation has grown steadily around our system capabilities, our service and support, and our in-depth partnership approach that we offer users.

The IBS funding consortium is the result of 18 months of exploring options for the company's future. "We were solicited as an acquisition target by a number of firms," Entin explained. "Additionally, we were approached as a potential joint venture partner and as a key player in several other scenarios. We also considered a company-sponsored investment. Ultimately, our main goal was to achieve a balance that would benefit the company, our employees and our clients. Our philosophy has always been 'service first,' and our strong sense of responsibility to IBS users was at the forefront of our decision-making process.

Fully staffed and funded, IBS is already moving forward in the application porting process. "With the backing of some of the most influential players in the real estate industry, we will be at the forefront of the next wave of technological advances as we look beyond our traditional market focus into a new, national arena," Entin concluded.