OTM £100m sale

Global property data group, CoStar, has confirmed the purchase of OnTheMarket (OTM) for £33million.

In a statement, OTM said: “OnTheMarket seeks to become the number one portal in the UK following an offer from CoStar Group.

“The deal was unanimously recommended by the OnTheMarket Board while CoStar has also received irrevocable undertakings and letters of intent with respect to approximately 29.5% of OnTheMarket shares including OnTheMarket’s six largest shareholders including Spicerhaart.”

The new owners plans to spend £46.5 million on sales and marketing in the first full year following the takeover. This is six times what OTM currently spends and more than three times the current annual media spend of Rightmove, the statement reads.

The offer of 110p per share is ‘substantially’ above its current 70p share price.

Jason Tebb, CEO at OTM, commented, “From a position of strength, partnering with CoStar Group will significantly accelerate our strategy with the clear target of becoming the market leader, whilst staying committed to fair and sustainable pricing.

“CoStar Group will bring industry-leading global expertise and significant financial firepower to invest in OnTheMarket, allowing us to accelerate our transformation of the sector.”

Andy Florance, founder and CEO at CoStar Group, added, “We believe the acquisition of OnTheMarket represents an attractive and efficient entry point for CoStar Group into the estimated £8 trillion UK residential property market.

“We are excited to combine CoStar Group’s resources and leading marketplace experience with OnTheMarket’s agent-focused culture to create a leading player in the UK marketplace and provide increased choice and higher quality offerings for consumers.”