Regional News

Zoopla recommends takeover: Good or bad for Rightmove?

By Editor 0 Comments NEWS, Regional News

Daily Mail & General Trust (DMGT) is backing the recommended takeover of ZPG's £2.2bn, 490p per share with 30% of DMGT's shareholder.

This is reflected in the shares, which are trading very close to the offer price, up 30.3% to 489p. US technology fund Silver Lake is behind the bid, which is pitched at a healthy 30% premium to yesterday’s close.

The deal has been struck on an enterprise value to earnings before interest, tax, depreciation, and amortization (EV/EBITDA) multiple of just over 20-times based on Berenberg’s forecast EBITDA for the September 2018 financial year. Which seems generous, although not out of step with valuations for internet-based businesses in the US.

It is also roughly in line with the consensus 2018 EV/EBITDA for Zoopla’s main rival and UK property site market leader Rightmove at around 23 times.

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