The strategic decision by top French property portal SeLoger to purchase its competitor Logic-Immo is a move that will reinforce the portal's position in the country, writes Geoffroy Reiser, ListGlobally's director of development.
The word "vertical" has its importance here, as a general classifieds site that belongs to Schibsted Classifieds Media, LeBonCoin.fr, is the leader in terms of visitors on real estate in France with over 9.9 million unique users.
With this strategic acquisition for € 105 million, SeLoger will reinforce its position in France. The cumulative audience of SeLoger (5.8M) and Logic Immo (2.7M) is 8.5 million unique visitors per month, which will enable SeLoger to compete closer with LeBonCoin.
Logic-Immo revenues were 75 million euros, hence SeLoger is paying 1.4 times the revenues to purchase a strong competitor. Is it much? Considering that SeLoger was purchased in 2011 by Axel Springer for 633 million euros, which was 7.6 times the revenues, one could argue that this acquisition is both strategically and financially sound. This was partly made possible by the fact that Spir Communication, the holding company of Logic Immo, has faced a difficult year with revenues decreasing by 15%.
A strong move that strengthens the competition between the top two players in the property portal industry in France, and put the competitors further behind.