February 2, 2017 by pan247

Zoopla pays £120 million cash to buy Hometrack

Zoopla, one of the UK’s largest online property sales websites, is splashing out £120 million in cash to buy Hometrack.

Hometrack specialises in automated valuations. It provides its services to mortgage lenders, developers, housing associations, investors and real estate professionals in Europe and Australia. 80% mortgage lenders in the UK use Hometrack’s services in making lending decisions.

Zoopla is UK’s second largest online property sales website by market share, after Right Move. Although it already provides details of average house prices to home buyers, Hometrack’s detailed data capabilities will give it an option to provide more data to home buyers while making purchase decisions, hence creating a clear differentiator from Right Move, the market leader.

Zoopla paid 17x EBITDA on Hometrack’s most recent financials. Hometrack generated adjusted EBITDA of £7.1M on the revenues of £15.5M. The rich valuation is supported by the fact that 70% of Hometrack’s revenue is subscription based.

You can read more here:

Zoopla to buy house price valuer Hometrack for £120M to beef up its data services