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.
Read more here
Join us in Miami from the 20th to the 22nd of June for the Global Online Marketplaces Summit. Our summit theme is From Classifieds to Marketplaces – Capturing Value from the Transaction and we’ll hear from Global Leaders who are creating the Online Marketplaces of Tomorrow.