By Joe Hoppe
OnTheMarket, the leading U.K. online property portal, has reached an agreement to be acquired by CoStar Group, a prominent provider of online real-estate marketplaces based in Washington, D.C. The takeover, valued at £99 million ($120.2 million), marks an exciting strategic entry point into the U.K. residential property market for CoStar.
According to a joint statement released by OnTheMarket and CoStar, each shareholder will receive 110 pence in cash for every OnTheMarket share held. This represents a significant premium of approximately 56% over the closing price on Wednesday of 70.5 pence per share. Shareholders representing 29.51% of OnTheMarket’s share capital, including the six largest shareholders, have already voiced their support for the acquisition.
OnTheMarket’s management has expressed their intention to unanimously recommend the deal, which is anticipated to be concluded in the fourth quarter, subject to certain conditions. CoStar’s substantial expertise and financial resources will provide valuable support for OnTheMarket’s ongoing transformative efforts within the sector.
In separate news, OnTheMarket announced that its first-half revenue for the period ending July 31 increased by 1% to reach £16.9 million. However, a pretax loss of £79,000 was recorded for the same period compared to a profit of £92,000 in the previous year.
This mutually beneficial acquisition will empower OnTheMarket to accelerate its growth and enhance its position within the industry.
