The property portal paid approximately $170 million in cash and issued approximately 5.3 million shares of common stock in connection with the acquisition.
"We are very excited that the deal is official and we can now provide the real estate industry with the finest marketing and software tools, all under one roof," said Pete Flint, Trulia co-founder and CEO. "We are now well positioned to be the leader in our sector, with a combined premium subscriber base of approximately 50,000 professionals. We plan to further penetrate the enormous market opportunity that lies before us and drive incremental opportunities to grow revenues."
"Over the past 14 years Market Leader has helped tens of thousands of real estate professionals grow their businesses and achieve new levels of success in their real estate careers," said Ian Morris CEO of Market Leader. "Our entire team is energized by the great value and new innovations that we will be delivering to our customers in the months and years ahead."
Trulia will operate Market Leader as a wholly owned subsidiary and the combined company will trade on the New York Stock Exchange under the stock ticker TRLA. Market Leader has requested that NASDAQ suspend trading of its common stock prior to the open of trading on Wednesday, August 21, 2013.
Source: Trulia Inc.
Edited by Gordana Davila
I think the acquisition of Market Leader was one of the smartest moves by Trulia in its challenging head-to-head with Zillow for supremacy of the online real estate space.
Market Leader gives them a perfectly complementary business to add strategic depth to the relationship with agents. Unlike the situation in other global markets the US market is all about engaging and building a relationship with agents rather than brokers as they are the rich vein of revenue and profitability.
Whereas Zillow relies heavily on agent branding profiles sold off the back of brand media marketing to create demand backed by an army of sales personnel on the telephone to agents, Trulia is approaching the business in a less 'gung-ho' manner relying on true engagement through agent profile based on credibility of social engagement matched with the real value of Market Leader CMS and lead generation systems - in many ways far more tangible and in the case of Market Leader more demonstrable in terms of paying for the service. That is not saying that Zillow's model does not deliver value, it is to me like comparing banner advertising CPM with Google Adwords or more closely a true CPA model.
The Market Leader acquisition also sits well as a subsidiary business able to be run as a separate but tightly integrated end-to-end solution for agents, very different from the Zillow acqusition of StreetEasy which feels contextually like a difficult marriage.