Morizon.pl, part of the NewConnect Group, has signed an agreement to acquire a 100% of Melog.com, Poland's largest independent publisher of specialist services for the real estate industry.
The transaction will be made in cash, 48.72%, and 51.28% of the Morizon.pl shares. When the majority owners leave, Melog.com will hold 42% equity in Morizon.pl and ultimately, the two companies will operate as one.
The board will consist of Jarosław Święcicki, President Melog.com and Boleslaw Drapella, President Morizon.pl. The completion of this merger has created one of the top three property portals in Poland.
The cash transaction will be used to purchase shares from the Italian owners Melog.com (45% stake) and the acquisition of 3.72% of the shares from the Polish owners, while new shares of Morizon.pl will be acquired by the Polish co-owners of the company, Jaroslaw Tomasz Swiecicki and Swiecicki.
Before the EGM approves the full purchase of Melog.com, Morizon.pl will raise Series E capital. In addition, the transaction includes managerial option in the amount of 5% of the company; this option is spread over three years, half of them will fall for the completion of 17 million of revenue and 3 million net profit in 2014 as part of the merged entity.
"This is yet another step, after the acquisition of Media Real Estate in April 2013, which will carry Morizon.pl on a dynamic growth through acquisitions. Melog.com is complementary in terms of operations, and with significantly extended range to effectively reach close to a million Poles interested in buying or renting property," said Boleslaw Drapella, CEO Morizon.pl.
"Melog.com is organically building its strong position in the online real estate market. The market is maturing, and its continued growth can be accelerated mainly by consolidation. Melog has a proven business model and a huge crowd of regular customers and users, Morizon is a publicly traded company and has interesting solutions and business model development. A common vision of further development - together we can better meet the needs of our customers and users, and ultimately achieve a leadership position in the market," said Jaroslaw Swiecicki, CEO Melog.com.
Morizon SA is a group of real estate search engines operating on the basis of real supplied effect, not just advertising listings. A leader in innovative approach to business, including the creator of the most popular mobile applications for the real estate market. As of April of 2011 Morizon SA (MZN) was listed on NewConnect Stock Exchange in Warsaw.
Morizon SA is the owner and creator of the search engine www.morizon.pl, listing properties 'for sale' and 'for rent' aimed for the Polish market.
As of April 2013, following the acquisition of 100% shares of Media Real Estate, Morizon also became the owner of the site nportal.pl, which was established in 2008.
In October 2013 Morizon SA was awarded in the category "Rising Stars 'fourteenth edition of the Ranking Deloitte Technology Fast 50 Central Europe.
Melog.com is a leading Polish property portal featuring real estate listings and offering services for the real estate industry.
Group Melog.com has been in operation since 1996. Initially the company provided a dedicated application software and web solutions for leading companies operating in Polish, including PZU SA, Allianz, QXL Ricardo, or Baker & McKenzie Poland. In the years 1999 - 2002 led, in partnership with venture capital funds, one of the first in Poland to compare products - innovative at the time service to.czy.to. In 2000 the company launched a website Oferty.net, and since 2007 the company has focused exclusively on services for the real estate market. Since 2010, the company is intensively developing mobile applications and services, since 2012 the company is the main portal site domy.pl.
Currently, the Group is the largest dedicated melog.com media publisher and services provider for the real estate market in Poland.
Company Melog.com in 2012 was in the prestigious group of the 50 fastest growing technology companies in Central Europe - Deloitte Technology Fast 50.
Disclosure: The above article was translated from Polish, from a press release provided by Morizon.pl.