Zoopla Property Group Plc is to acquire Hometrack.co.uk Limited, the UK provider of residential property market insights and analytics, for £120 million.
Established in 1999, Hometrack provides residential property market insights, analytics, valuations and data services to around 400 mortgage lenders, new home developers, investors, housing associations and local authorities.
The total consideration is £120 million on a cash-free, debt-free basis with £108 million due on completion and £6 million payable on each of the first and second anniversary following completion. Hometrack has a CAGR of c.15% from F
Y13-FY16 and generated revenues of £15.5 million and adjusted EBITDA of £7.1 million in the year to 30 June 2016. The consideration represents a 14.7x multiple based on LTM to Dec-16 adjusted EBITDA for Hometrack. The value of Hometrack’s gross assets was £13.1 million as at 30 June 2016.
The acquisition will be financed through a combination of existing cash resources, a new £75 million term loan and an equity placing of up to 5% of Zoopla’s ordinary issued share capital.
Alex Chesterman, Founder & CEO of Zoopla commented, “We are delighted to announce the acquisition of Hometrack, the clear market leader in AVM services in the UK and a leading player in Australia. The deal will allow us to serve our consumers and partners even more effectively and gives us unrivalled data capabilities in the residential property market. Hometrack is a perfect fit to develop our data services business and I look forward to welcoming Charlie and his team to the ZPG (Zoopla) family.”
Hometrack provides its products to 15 of the top 20 mortgage lenders in the UK as well as all 4 leading Australian mortgage lenders and its UK automated valuation model is recognised by all the major ratings agencies. Over 70% of Hometrack’s revenues are subscription-based and underpinned by long-term relationships.
Hometrack has 55 staff operating out of offices in London and Sydney. Following completion, Hometrack will continue to operate as a standalone brand and platform with the team forming the cornerstone of Zoopla’s data services business, which will be headed up by Charlie Bryant, CEO of Hometrack.
UK, London
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