Market Insights by SEG: Silver Lake Partners Acquires ZPG

SEG Sector Deals provide transaction highlights, relevant insights, and SEG’s perspective on interesting M&A deals within the software industry. 

Private equity firm Silver Lake Partners announced the acquisition of Britain’s Zoopla Property Group (ZPG) for $2.98B. ZPG owns and operates a plethora of home-related software solutions including Zoopla, one of the biggest property portal websites in the U.K. The transactions follows close on the heels of ZPG’s recent acquisition activity, including their 2017 purchase of Calcasa and Expert Agent, providers of cloud-based property data, information and solutions for real estate agents. With backing by Silver Lake Partners, ZPG is able to take steps to accelerate their growth.

SEG’s Take

This transaction reflects the health of the M&A markets, particularly in the real estate software sector. According to SEG’s 2018 Real Estate Software Snapshot, 2017 was a record-setting year for the sector, as real estate software deal volume reached 100 transactions. Deal volume continued to grow for the fourth consecutive year, and has grown by 17% on a CAGR basis since 2014. In addition, SEG has tracked a number of notable sector transactions through the first four months of 2018 (see SEG’s Spring 2018 SaaS M&A Update), including RealPage’s acquisition of ClickPay, and Trimble’s acquisition of Viewpoint, which points to the continuing health of the real estate software M&A market.

Brief Transaction Details:

Total Transaction Value (B)$2.98
Enterprise Value (B)$3.14
TTM Seller Revenue (m)$327.59
TTM Seller EBITDA (m)$118.98
TTM Revenue Multiple 9.6x
TTM EBITDA Multiple26.4x
Seller Business Description:

ZPG owns and operates several home-related digital platforms including Zoopla, uSwitch, PrimeLocation and Property Software Group. HQ: London, England.

Buyer Business Description:

Silver Lake Partners is a global leader in technology investing. HQ: Menlo Park, CA