A City analyst says Zoopla Property Group’s conditional acquisition of the UK's largest supplier of estate agency software for £75m may lead to an increase in agents becoming members of the Zoopla and Primelocation portals.
In a note to its investor clients, Jefferies - a City consultancy which has previously worked with Zoopla - describes the acquisition of Property Software Group as “a clever move and one not available to their main ... competitor [Rightmove].”
Jefferies claims that Zoopla offers an agent the chance to have less complex and diverse technical link-ups.
”In all but the smallest UK businesses, agents upload property details to their back office systems before uploading again to the property portals. Today's acquisition will allow Zoopla to provide a one stop shop for day to day inventory and CRM management all the way through to digital marketing” says the consultancy.
It also notes that customer churn is much lower for PSG than it has been in Zoopla's recent past.
“We understand that only around 3,000 of PSG's customers currently use the Zoopla platform, by providing an end to end solution we expect many the PSG only customers to join the Zoopla platform over the medium [term].”