Zoopla is to acquire Property Software Group, the major suppliers of software systems such as Vebra, Alto, Jupix, Core and CFP,  to agents. PSG’s systems are used in over 8,000 UK agency branches. The software is used on a daily basis by over 40,000 agents.

It has long been speculated that one of the big portals would make such an acquisition.

The deal, said Zoopla this morning, will enable it “to provide the UK property industry’s first end-to-end solution for property professionals”.

Mark Goddard, PSG CEO, will become managing director of Zoopla’s property services division.

Zoopla said: “The acquisition of PSG is a core part of ZPG’s continued mission to be the most effective partner for UK property professionals and will enable the enlarged Group to offer agents the UK property industry’s first end-to-end solution including software and CRM, digital marketing and market insight tools and further revenue opportunities.”

Zoopla is paying  £75m on a cash-free, debt-free basis payable in cash, with £47m  payable on completion, £22m payable six months after completion and £3m payable each of 12 and 24 months after completion. The value of PSG’s gross assets was £28.2m aas at the end of March.

The transaction will be funded from the Group’s existing cash and a £50m extension of the current debt facility it has secured from its existing lenders.

Zoopla Property Group will maintain its current dividend policy of 35%-45% payout ratio of the combined group profit.

Completion of the deal is conditional upon either the cancellation of PSG’s existing FCA consumer credit licence or FCA approval of the change of control of PSG, whichever is the earlier

The transaction provides an exit for PSG’s institutional backers, LDC, the private equity arm of Lloyds Banking Group, which originally invested in the business in December 2013 along with certain members of the management team including Mark Goddard, Eduardo Mardell and James Toogood.

Zoopla CEO Alex Chesterman said of the deal: “This acquisition is a game-changer, combining ZPG’s best-in-class property marketing solutions with PSG’s best-in-class property workflow solutions, and will transform the services available for both UK agents and consumers.

“We will be able to offer UK property professionals an unrivalled proposition supporting them with their software and CRM solutions, digital marketing requirements, market insight tools along with providing them a range of new revenue opportunities through PSG’s MoveIT platform.

“Our ambition has always been to be the most effective partner to the UK property industry and this deal will allow us to work more closely with our agent partners and offer them an even more compelling service. I look forward to welcoming Mark and his team to the ZPG family.”

In a statement to Zoopla staff this morning, Chesterman says that PSG will continue to operate as a standalone brand and platform. Post completion, he says, “we will start to integrate some of our services, further driving engagement with and value to our agent partners”.

ZPG’s 230 employees will join the Zoopla group, and Chesterman says: “This is an important transaction and one that we have been working on for some time. A lot of effort has gone into getting this done and I would like to thank those who have helped to get us to this point.”