Zoopla shares soar as US firm makes £2.2bn takeover bid

Estate agent group is currently majority owned by Daily Mail and General Trust

The online estate agent group floated on the stock exchange in 2014

Shares in Zoopla Group (ZPG) shot up 30 per cent at the open on Friday after reports that US venture capital firm Silver Lake has offered to buy the company for £2.2bn.

The US firm has made an all-cash offer of 490p per share, which represents a premium of 31 per cent to the closing price of ZPG’s stock on Thursday 10 May.

Alex Chesterman, founder and chief executive of ZPG, said the group would benefit from Silver Lake’s technology expertise and global network.

“In 2008, we transformed the property portal landscape with the introduction of a highly differentiated proposition providing data and delivering transparency to empower consumers to make smarter property decisions,” he said.

“The terms of the acquisition represent an attractive premium that recognises the quality of ZPG’s businesses and the strength of its future prospects and allows shareholders to realise today in cash the potential future value of their holdings.”

Zoopla, which owns the eponymous online estate agent as well as price comparison service uSwitch, is currently part owned by the Daily Mail and General Trust (DMGT), which merged its online property business with Zoopla in 2012. DMGT remains Zoopla’s largest shareholder, having backed it through its initial public offering in 2014. Shares in the group jumped as much as 9 per cent in early trading on Friday.

Paul Zwillenberg, chief executive of DMGT, said the offer “promises to deliver a very significant return for DMGT”: the company stands to make around £640m from the sale of its holding in Zoopla.

“The sale of our stake, pending shareholder approval at ZPG, fits with our long track record of successfully identifying new opportunities, incubating young businesses and supporting their growth to create value for shareholders,” Mr Zwillenberg said.

Other brands owned by the Zoopla Group include PrimeLocation, Hometrack and money.co.uk.