Property website Zoopla has agreed to spend £75m on a Northamptonshire property software provider.
Zoopla Property Group (ZPG) has agreed to buy The Property Software Group (PSG), which was set up in Brackley in 2007, and offers cloud-based tools and desktop software products to about 40,000 estate and lettings agents across the UK.
“This acquisition is a game-changer, combining ZPG’s best-in-class property marketing solutions with PSG’s best-in-class property workflow solutions, and will transform the services available for both UK agents and consumers,” said Alex Chesterman, founder and chief executive of ZPG.
“We will be able to offer UK property professionals an unrivalled proposition supporting them with their software and CRM solutions, digital marketing requirements, market insight tools along with providing them a range of new revenue opportunities through PSG’s MoveIT platform.”
PSG generated revenues of approximately £15.9m in the year to 31 March 2016. Its chief executive Mark Goddard will now become managing director of ZPG’s property services division.
He said: “We’ve had a long-standing relationship with the team at ZPG and are incredibly excited to continue our journey as part of their growth and innovation story.
“We are very much looking forward to continuing to develop unmatched software tools and innovative products and to delivering even better value to our clients.”
ZPG will pay £47m on completion, with an additional £22m six months after completion and £3m payable each of 12 and 24 months after completion.