The owner of property listing websites Zoopla and PrimeLocation has agreed to a takeover by American private equity firm Silver Lake Management, valuing the company at £2.2billion.
ZPG, which also owns uSwitch and Hometrack, said it has accepted a cash offer worth 490p a share, which represents a 31 per cent premium to last night’s closing price of 375.20p.
ZPG is part-owned by Daily Mail and General Trust, which also owns MailOnline, This is Money and the Daily Mail.
The news sent shares in ZPG up by 30 per cent to 487.5p.
Takeover deal: ZPG, which owns Zoopla, saw shares jump by 30% following the news
The group said it had received backing from 31 per cent of shareholders, including Daily Mail and General Trust, which has had a 30 per cent stake in the group since its online business, the Digital Property Group, merged with Zoopla in 2012.
DMGT shares rose 5 per cent this morning on the news.
Silver Lake, which has previously invested in technology giants of the likes of Tesla and Skype, said ZPG was a ‘great growth technology company’.
Zoopla and rival property listing website Rightmove have become a fixture of the UK house hunting experience, with buyers heading straight to the portals to look for properties for sale.
Estate agents pay to list properties on the websites and, as home owners cannot directly list there, the portals are also benefiting from the rise of online estate agencies.
ZPG bought price comparison website uSwitch in 2015, while it also bought Money.co.uk last year.
‘It has established strong positions in property classifieds, home and financial services markets by innovating in product and marketing’, said Simon Patterson, managing director of Silver Lake.
‘We are delighted to partner with Alex Chesterman, one of Europe’s leading and most accomplished technology entrepreneurs, to invest in ZPG’s continued growth.’
Alex Chesterman, founder and chief executive of ZPG, said the terms of the acquisition represented an ‘attractive premium’ that recognised ‘the quality of ZPG’s businesses and the strength of its future prospects’.
‘Silver Lake is the global leader in technology investing and I am firmly of the belief that ZPG will benefit from their technology expertise and global network, which will help accelerate our growth,’ he added.
The deal is expected to close in the third quarter of the year, the companies said.