You are here: Home - Investing - Experienced Investor - News -

Zoopla buys uSwitch

0
Written by:
30/04/2015
Zoopla has bought uSwitch for £190m, it was announced today.

Zoopla Property Group (ZPG), which owns Zoopla and PrimeLocation, will pay £160m for the site, and a supplementary performance-based fee of £30m. Zoopla shares leaped by 14 per cent (to £2.10) at the news, but prices remain below flotation rates (of £2.20); when the company debuted last June, its market value neared £1bn.

A spokesperson for ZPG said the company would move to merge the two sites into a single portal, in a “natural step” that would create a unified platform for consumers to locate and manage their new home. ZPG chief executive Alex Chesterman dubbed the deal “transformational”.

Zoopla was founded in 2007, and accrues almost 44m unique visitors per month; uSwitch began life in 2000, and attracts around 50m visitors annually. Last year, it generated a profit of £16m on a revenue of £63m.

In recent months, Zoopla has lost significant market share to competitor OnTheMarket.com, which claims to draw 90 per cent of its agents from Zoopla – and has the backing of many high street estate agents.

Previous institutional backers LDC (the private equity arm of Lloyds Banking Group) and Forward Private Equity will not retain any stake in the business. LDC is the largest beneficiary of the sale, making 2.4 times its original investment of £35-40m in the process; in the past year, LDC has made over £715m from exiting investments.

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week