In a significant development for the property portal sector, global real estate powerhouse, CoStar Group, Inc., has extended an offer to acquire OnTheMarket, one of the UK’s leading residential property portals, for a sum of approximately £100 million.
OnTheMarket, the third most visited residential property portal in the UK, was established in 2015 as an agent-led competitive alternative to other prevailing UK property portals. Its immense success can be attributed to an agent-friendly model, which has drawn over 13,000 agent advertisers, providing high-quality leads at a fraction of the cost of other UK portals.
CoStar Group, a trailblazer in the online real estate marketplace, is no stranger to the acquisition and augmentation of digital property platforms. With its origins rooted in the commercial sector through websites such as CoStar and LoopNet, CoStar’s formidable presence is underscored by a staggering 280 million website visits in September alone, notably surpassing industry behemoth, Rightmove. Not limited to commercial platforms, CoStar’s portfolio includes leading US residential portals like Homes.com, which has experienced meteoric growth under its stewardship.
CoStar’s acquisition strategy has repeatedly illustrated its prowess in transforming modestly positioned portals into market leaders. This talent is underscored by its acquisition and subsequent growth of Apartments.com, transforming it from a 5th position player to the dominant force in the US residential rental sector.
The group’s ambitious vision extends far beyond the borders of North America. Andy Florance, Founder and CEO of CoStar Group, expressed his enthusiasm for the acquisition, “We believe the acquisition of OnTheMarket represents an attractive and efficient entry point into the £8 trillion United Kingdom residential property market. We are excited to welcome the OnTheMarket team to the CoStar Group family.”
The acquisition is poised to offer a win-win scenario for all stakeholders. Jason Tebb, CEO of OnTheMarket, is optimistic about the future, recognising the value of pooling strengths. “We are very much looking forward to joining the CoStar Group residential network. From a position of strength, the partnership will significantly accelerate our strategy with a clear target of becoming the market leader. Together we share a long history and strong commitment to agents, who will benefit from CoStar’s commitment to maintaining our fair and sustainable pricing model and greater opportunities to enhance their businesses.”
This acquisition, awaiting customary shareholder approvals and slated for completion in Q4 2023, marks a monumental juncture for the property portal landscape. Both parties are set to discuss further details during CoStar Group’s Q3 2023 financial results conference call on October 24, 2023.
