Shares in Rightmove (LSE: RMV) fell 4% on Tuesday after rival CoStar Group completed its £99 million acquisition of OnTheMarket, signalling its intent to challenge the UK’s largest property portal.
The Washington DC-based real estate data giant plans to pump £46.5 million into OnTheMarket’s sales and marketing in the first year – six times its current spend and three times Rightmove’s. CoStar founder Andy Florance said the tie-up creates a “genuine disruptor” to compete with “complacent” Rightmove.
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The deal will combine CoStar’s financial strength and tech prowess with OnTheMarket’s agent network. CoStar paid 110p per share under the terms of the agreed scheme, valuing OnTheMarket at £99 million. It marks the start of a long-term plan to drive more customers to OnTheMarket and significantly boost leads to agents.
