Next Co of Japan has acquired 100% of the equity in Trovit, a vertical search business operating in homes, cars, and jobs, for 80 million euros. In the financial year ended 31 December 2013, Trovit had 17.6m euros in revenue and 5.9 million euros in operating profit valuing the company at 4.5x revenues and 13.6x EBITDA.
According to a financial market release in Japan, Trovit was founded in 2006. Operating out of its head office in Spain, Trovit offers real estate/housing, used car and job ad aggregation sites in about 40 countries in Europe, North and South Americas, and Asia. Trovit’s classified aggregation sites exceed 47 million unique visitors a month and maintain content partnerships with more than 20,000 firms. The real estate aggregator, in particular, which forms the core of Trovit’s strength, is one of the world’s largest the number of its property ad listings exceeding 86 million.
NEXT has an ongoing medium-term business strategy based on the slogan “we aim to be a global company through DB and CCS.” Next's homes.co.jp portal ranks is the second most visited portal in Japan after market leader suumo.jp and slightly ahead of athome.co.jp.
The medium-term goal for Next Co is to win the largest proportion of online property aggregator users in Japan. Towards this end, they are stepping up their efforts to attract web traffic and to promote their brand mainly through SEO and search engine advertising initiatives. They are also developing content and service offerings appealing to property seekers on the Internet.
Towards the goal of going global, NEXT has taken the first steps by launching real estate information portals in the Republic of Indonesia, the Kingdom of Thailand, and the Republic of China (through an affiliate).
According to the market release, having Trovit as a subsidiary will allow NEXT to build a massive platform offering real estate and lifestyle information from across the world. This acquisition will bring with it expertise in operating information websites worldwide at low cost, 20,000 content partnerships from about 40 countries, more than 86 million property ad listings, and a base of 47 million unique site visitors per month.
In the vertical search market, Trovit is the market leader with Mitula, another Spain based player, in second place.