Quayle Munro is pleased to announce that it has advised The Property Software Group (“PSG”), the leading provider of mission-critical workflow tools to the residential property sector, on its sale to Zoopla Property Group Plc (“ZPG”), for £75m on a cash-free, debt-free basis.
Established in 2007, PSG is the UK's market-leading provider of software solutions to property professionals, used in over 8,000 agency branches. PSG provides workflow tools to over 40,000 estate and letting agents across the UK through its innovative cloud-based (Alto, Jupix) and desktop (Vebra, Core, CFP) software products and provides essential systems for the day-to-day management of inventory, marketing and communications as well as diary management, chain progression, business reporting tools and financial processes.
In addition to its market-leading software products, PSG's newest products, MyPropertyFile and MoveIT, provide agents with digital platforms for engaging more effectively with their clients and generating additional revenue streams from a variety of property-related services. In the year ended 31 March 2016, PSG generated revenues of c. £15.9m and Adjusted EBITDA of c. £5.1m, with 84% recurring revenues and a customer retention rate of over 97%.
ZPG is a digital media and lead generation platform that owns and operates some of the UK's leading online consumer brands including Zoopla, uSwitch and PrimeLocation. The acquisition of PSG is a core part of ZPG's continued mission to be the most effective partner for UK property professionals and will enable the enlarged Group to offer agents the UK property industry's first end-to-end solution including software and CRM, digital marketing and market insight tools and further revenue opportunities.
The transaction provides an exit for PSG's institutional backers, LDC, the private equity arm of Lloyds Banking Group, which originally invested in the business in December 2013 along with certain members of the management team including Mark Goddard, Eduardo Mardell and James Toogood.
Mark Goddard, CEO of PSG, said: “This was a well-managed process, with a great deal of care and thought put into how to present the business most effectively. The quality of Quayle Munro’s advice played an important role in identifying the right buyer to take PSG forward and achieving an excellent outcome.”
Alastair Weinel, Director at LDC, said: “We are delighted with the outcome of this transaction. Quayle Munro’s extensive preparation, as well as its hands-on management of the process, was instrumental to its success.”
The transaction adds to Quayle Munro’s track record in advising SaaS-based businesses.