More UK property listings consolidation. Zoopla, which sits at number 2 in the UK (behind market leader Rightmove), has acquired Globrix from A&N Media (DMGT) for an undisclosed sum, and has effectively absorbed its brand with it — users are already being re-directed to Zoopla.co.uk.
It follows a recent spout of M&A activity by Zoopla Property Group. In May this year, the company purchased listings and property data supplier UpMyStreet, also for an undisclosed sum, though GigaOm pegged it at less than £1 million ($1.6m). Meanwhile, its merger with the Digital Property Group (operator of PrimeLocation.com and Findaproperty.com), also from A&N Media, finally closed in June, following approval by the UK’s regulatory body, Office Of Fair Trading (OFT), as Zoopla continues to put the heat on Rightmove.
That said, all of this M&A activity comes at a time when the housing market in the UK remains under a lot of pressure, post-financial crisis, with Britain particularly exposed on the property front. So in that sense, this is about consolidation as much as competition, in what looks — for now, at least — like a bigger slice of a shrinking cake.
To that end, before today’s acquisition, Zoopla already had a partnership with Globrix. Launched in 2008, Globrix.com was originally positioned as a free-to-list property search engine directing traffic to estate agent websites, but thanks to a tie-in with Zoopla, it had since adjusted its model to direct traffic and leads via the Zoopla Property Group portals.