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Proptech leader Zoopla reinforces firm with £75m Property Software Group takeover
3 min read
19 April 2016
Zoopla has taken another step towards changing the property industry forever with the £75m acquisition of Property Software Group (PSG), which provides technological support to over 8,000 estate agency branches across the UK.
Real Business explored the changing face of the country’s property industry in March and spoke with Zoopla boss Alex Chesterman. At the time, he said that “change is inevitable” thanks to the web and mobile, which means estate agents must embrace the movement.
PSG was launched in 2007 and delivers tools to estate and lettings agents nationwide through a combination of cloud and desktop software developments. The tech it provides allows clients to manage inventory, marketing, communications, diaries and finances.
Integrating PSG is in line with Zoopla’s goal of expanding its wider group, which includes uSwitch and PrimeLocation, to become a full-service partner for property businesses and professionals.
The takeover by Zoopla comes after PSG achieved £15.9m revenue for the year ended 31 March 2016, a period which also saw the firm achieve a customer retention rate of 97 per cent.
The cash deal will be payable as £47m on completion, £22m six months after completion and £3m 12 and 24 months after completion. While bolstering Zoopla’s armoury, the deal also gives Lloyds’ private equity arm LDC an exit, having backed PSG in December 2013.
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“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 Chesterman.
“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 will continue to work under its existing brand, while CEO Mark Goddard will become MD of Zoopla’s property services department, reporting into Chesterman.
Goddard added: “I am very proud of what we have achieved over the last nine years but it is just the start. 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.”
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