OnTheMarket (OTM) won't be an agent-led portal for much longer after yesterday's shareholder vote which approved a $100M buyout by US giant CoStar Group—a 94% landslide that will have major ramifications in the UK market.
At a premium of 110p per share, OnTheMarket will now be delisted from the stock exchange as CoStar embarks on an "aggressive" move to dethrone Rightmove—with over $45M to be invested in marketing OTM as a serious alternative to Rightmove.
CoStar has vowed to strengthen OTM’s position as ‘the agents’ portal’, and will continue to charge agents a 'small proportion' of what they pay Rightmove.
Just 2.11% of shareholders voted against the takeover.
The likelihood is that Jason Tebb will remain CEO, while CoStar has also suggested that there will be no reduction in staff in the company, a workforce of approximately 180 people.
For CoStar CEO Andy Florance, the fight starts now. He has already made clear the company's intentions to significantly expand its reach into the European market, and the relatively smooth outcome of the OnTheMarket deal bodes well for future acquisitions.
CoStar will now fight on three fronts: continuing its rivalry with US giant Zillow; challenging Rightmove in the UK; and exploring its next European conquest.
If you're wondering how market leader Rightmove will react to this news, our editor Edmund has already done the legwork for you.
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