Zoopla buys PSG from Lloyds for £75 million

Spending spree: Zoopla is buying PSG

Zoopla

19 April 2016

Lloyds’ private equity arm LDC has hit the jackpot after selling property software firm PSG to househunting website Zoopla today for £75 million.

LDC backed a management buyout of the company from the Guardian Media Group for £17.8 million in December 2013 and is understood to have gained a four-fold return on its investment.

PSG, which was set up in 2007, made underlying profits of £5.1 million in the year to March and its software - providing the essential day to day management tools for estate agents - is used in branches.

Founder and chief executive Alex Chesterman said: “This acquisition is a game-changer, combining Zoopla's best-in-class property marketing solutions with PSG's best-in-class property workflow solutions, and will transform the services available for both UK agents and consumers.”

The business marks another major deal for Zoopla, which spent £160 million on energy switching website uSwitch last year. The deal paid dividends today as Zoopla predicted results at the upper end of City hopes, thanks to energy price cuts driving significant switching volumes. Shares rose 3% or 8.8p to 286.1p.

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