Purplebricks Group plc has announced that it has agreed terms to acquire the Canadian digital real estate service DuProprio/ComFree (DPCF) for £29.3 million.
DPCF owns and operates one of Canada’s leading commission-free real estate service networks as an online offering with similar aspects to Purplebricks.
The management team of DPCF has built up a profitable 20.2% market share of the real estate market in the province of Québec, and has more recently launched into new territories, securing a 2.0% market share in Ontario and 2.3% in Western Canada (Manitoba, Saskatchewan and Alberta).
DPCF reported approximately 39,000 listings in 2017, reporting total revenues of CAN$45.6 million, approximately £26.2 million.
The Board of Purplebricks believes that DPCF presents attractive opportunities to quickly grow market share in Canada, enhance customers’ experience through its market leading model and technology, start capitalising on an extensive buy-side revenue opportunity in Canada. The valuation is attractive based on DPCF’s strong market position in the Canadian real estate sector, impressive revenue growth since launch and its underlying profitability
Commenting on the Acquisition, Michael Bruce, Global CEO of Purplebricks, said: “DPCF developed a strong presence in delivering a flat fee, cost-effective, professional real estate service to the people of Canada, challenging the conventional agency market. Their model of bringing a range of service packages and support, with access to expertise from coaches to legal professionals, is proving highly attractive to the Canadian public, and has aspects in common with the Purplebricks’ model and ethos in the UK, Australia and the US.
“We are excited about working with DPCF’s exceptionally strong management team to leverage the significant opportunities for growth in the Canadian market. Expanding the geographical footprint across Canada and building the company’s buy-side offering provides the potential to transform the size of the DPCF business and consolidate its market leadership.”