JLL to acquire Skyline AI
The Fortune 500 real estate giant is buying the Israeli company that processes information for real estate experts using AI and algorithms
The American real estate giant JLL announced Wednesday that it is in the process of acquiring Israeli company Skyline AI. Both companies said that the deal is expected to be finalized soon after agreeing on conditions.
This will be JLL’s first acquisition in Israel. The Fortune 500 company made $16.6 billion in annual revenue in 2020 and operates in 80 countries, employing over 92,000 people. It is traded on the New York Stock Exchange with a valuation of about $12.5 billion.
Skyline AI uses artificial intelligence information and technologies and machine learning algorithms to process information quickly and generates operational insights for real estate experts.
Following the acquisition, JLL will establish an R&D center based on Skyline. To date, the Israeli AI company has raised $21 million with its investors including TLV Partners, Sequoia Capital, iAngels, Arbor Ventures, JLL Spark and NYCA Partners.
Skyline co-founder and CRO Iri Amirav said that "this is a big, significant day for us. We are serial entrepreneurs who have been working together for many years. We sold a company to ironSource and AVG in 2011. In 2017, we entered the real estate world. We have developed a technology that reviews information sets. We know how to predict when a property will go on the market, what the rent will be in each unit, and which properties will outperform others.”
"We have 30 employees, 25 of them in Israel, and all are very technological. This is the first technological JLL acquisition in Israel and in general. This is the first of probably many real estate companies buying a Proptech company. This is an area that is still in its infancy. We will open new positions thanks to the deal, we worked very hard during Covid, which accelerated processes. JLL examined us closely and they saw that we were able to predict for them which properties should go on the market," Amirav concluded.
Ziv Shor, CEO of JLL Israel stated that “the company in Israel provides services for building management, project management services, and other additional services to multinational companies in Israel. The company has about 200 employees in Israel. This is JLL's first full acquisition in the Proptech field. "
"Acquiring Skyline is a significant step for JLL, in providing the most creative and strategic advice to our clients," said Richard Bloxam, Global CEO, Capital Markets at JLL. "When combining the best advisor intelligence with artificial intelligence-based data analysis, the insights gained are beyond human ability, which creates a competitive advantage for JLL's teams and customers."
In addition, JLL will integrate Skyline's technology and information into its products, enabling its customers to better assess future asset values, save expenses, identify promising investment opportunities and make critical business decisions (such as when to raise the rent, when to make property improvements or sell, etc.). Combining Skyline's ability with artificial intelligence-based information analysis and JLL's experience in the industry will help JLL's clients to make decisions and identify trends more quickly.
Skyline was founded in 2017 by serial technology entrepreneurs Guy Zipori, Amir Leitersdorf, Iri Amirav, and Or Hiltch, who together, gained experience in establishing, building, and selling technology companies. JLL Spark, JLL's investment arm, has been investing in Skyline since 2018.
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Skyline's platform uses artificial intelligence (AI) and machine learning (ML) based models to process information from more than 300 different information sources - the most accurate and comprehensive information of multi-family assets. The system tracks about 10,000 different parameters (such as property owner information, property characteristics, demographics, historical transactions, and debt) of 400,000 properties across the U.S. Over time, Skyline's platform detects inconsistencies between different data sources and determines which one is most accurate to help investors maximize their investment and rental opportunities.