CoStar Group completes acquisition of OnTheMarket

CoStar Group announces the completion of its acquisition of OnTheMarket. On 19 October 2023, CoStar Group announced a recommended cash offer of 110 pence per share for OnTheMarket Plc, valuing OnTheMarket at approximately GBP 99 million, to be implemented by a scheme of arrangement. The shareholders’ meetings to vote on the scheme were held on 4 December 2023 and the scheme was approved by over 94% in number and over 97% in value of OnTheMarket shareholders voting, representing a record-breaking turnout for OnTheMarket shareholders. The failed efforts of a fringe objector without any standing were soundly rejected by shareholders, employees, and the court. A court hearing to sanction the scheme was held on 7 December 2023 and the Scheme Court Order became effective today. CoStar Group’s acquisition of OnTheMarket will combine the financial strength, online marketplace experience, and technology of CoStar Group with OnTheMarket’s large network of agents to create a genuine disruptor to the established U.K. market leaders. The recommended acquisition was overwhelmingly supported by OnTheMarket shareholders, the majority of whom were agents. CoStar Group plans to integrate OnTheMarket into its network of real estate marketplaces and anticipates investing GBP 46.5 into sales and marketing in the first full year following the commencement of the integration, six times the current annual media spend and more than three times the current annual media spend of Rightmove plc. CoStar Group’s initial planned investment will mark the first stage of a multi-year investment programme totalling hundreds of millions of pounds to drive more consumers to the OnTheMarket portal with the goal of significantly increasing the quantity of valuable leads to OnTheMarket’s agent clients.