Zoopla Property Group has confirmed its conditional agreement to buy The Property Software Group, which it calls the UK’s market-leading provider of software solutions to property professionals used in over 8,000 agency branches.
PSG provides daily workflow tools to over 40,000 individual estate and letting agents across the UK through its cloud-based and desktop software, and provides systems for day-to-day management of inventory, marketing and communications as well as diary management, chain progression, business reporting tools and financial processes.
PSG’s MyPropertyFile and MoveIT provide agents with digital platforms for engaging with clients and generating additional revenue streams from property-related services.
Zoopla says the acquisition is a part of its “continued mission to be the most effective partner for UK property professionals”. Mark Goddard, chief executive of PSG, will become managing director of ZPG’s property services division, reporting to ZPG founder Alex Chesterman.
Chesterman describes the acquisition as a “game-changer” while Goddard says the acquisition is the conclusion of “a long-standing relationship with the team at ZPG.”
PSG will continue to operate as a separate brand but its 230 employees will join the Zoopla group.
The announcement came after a leading market analysis service raised concerns at the extent to which Zoopla’s “dramatic top line” revenue improvement in 2015 was reliant on its acquisition last year of comparison website uSwitch to provide growth.
The Motley Fool - a respected advice column written by a range of different City analysts - says that although’s Zoopla revenue grew a dramatic 34 per cent last year, without the uSwitch purchase its core business actually fell slightly from £80.2m to £79.9m.
“This is the last thing investors want to see in a growth share valued at a pricey 25 times forward earnings” says Motley Fool.