Zoopla Property Group Plc is to acquire Property Software Holdings Limited from LDC for £75 million in cash with £47m payable on completion, £22 million payable 6 months after completion and £3m payable each of 12 and 24 months after completion.
In the year ended 31 March 2016, PSG generated revenues of £15.9 million and Adjusted EBITDA of £5.1 million, with 84% recurring revenues and a customer retention rate of over 97%. The value of PSG’s gross assets was £28.2 million as at 31 March 2015
Established in 2007, PSG is a provider of software solutions to property professionals, used in over 8,000 agency branches. PSG provides workflow tools to over 40,000 estate and lettings agents across the UK through its innovative cloud-based (Alto, Jupix) and desktop (Vebra, Core, CFP) software products and provides essential systems for the day-to-day management of inventory, marketing and communications as well as diary management, chain progression, business reporting tools and financial processes.
In addition to its software products, PSG’s newest products, MyPropertyFile and MoveIT, provide agents with digital platforms for engaging more effectively with their clients and generating additional revenue streams from a variety of property-related services.
PSG will continue to operate as a standalone platform. Mark Goddard, CEO of PSG, will become Managing Director of the Group’s Property Services division, reporting to ZPG Founder & CEO, Alex Chesterman.
Alex Chesterman, Founder & CEO of Zoopla Property Group Plc said, “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.