19th Apr 2016 06:46
LONDON (Alliance News) - Zoopla Property Group PLC on Tuesday said it will buy Property Software Holdings Ltd for GBP75.0 million on a cash-free, debt-free basis, and also said it now expects full year 2016 results at the higher end of market expectations.
Zoopla, which owns consumer brands focused around property including uSwitch and PrimeLocation, said Property Software provides software products to estate and letting agents across the UK for the management of inventory, marketing and communications, and for diary management.
Property Software recently launched its MyPropertyFile and MoveIT products, which provide agents with digital platforms through which to engage with clients, Zoopla said, noting the company generated revenue of GBP15.9 million for the year ended March 31.
Zoopla said the transaction will be funded from its existing cash and a GBP50.0 million extension of the current debt facility it has secured from its existing lenders.
Zoopla added that, post completion of the deal, Property Software will continue to operate as a standalone platform and brand, and Property Software Chief Executive Mark Goddard will become managing director of Zoopla's Property Services division.
Completion is dependent upon either the cancellation of Property Service's existing Financial Conduct Authority Consumer Credit License or Financial Conduct Authority approval of the change of control of Property Services, whichever is the earlier, Zoopla said.
Zoopla added it is "pleased with current trading", and said its Comparison Services division had performed particularly strongly due to energy supplier price cuts. As such, Zoopla said it now expects 2016 results towards the higher end of market expectations.
Zoopla will publish its interim results on May 25.
"We will be able to offer UK property professionals an unrivalled proposition supporting them with their software and customer relationship management solutions, digital marketing requirements, market insight tools along with providing them a range of new revenue opportunities through Property Services' MoveIT platform," said Zoopla Founder and Chief Executive Alex Chesterman.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
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