ZPG Plc (LSE:ZPG) ("ZPG" or the "Company"), which owns and operates some of the UK's most trusted property and household-related digital brands, today announces that it has agreed to acquire Calcasa ("Calcasa"), the leading provider of automated property valuations and statistical market analysis in the Netherlands, for £26.5 million on a cash-free, debt-free basis, with a performance-based earn-out of up to £44.2 million (the "Acquisition"). Completion of the Acquisition took place on 1 December 2017.
Established in 2005, Calcasa is the leading automated valuation model ("AVM") and residential property market insights provider in the Netherlands. With the largest property database of over 10 million unique price points Calcasa provides property valuation and risk analysis to over 100 key stakeholders in the Dutch housing market including mortgage lenders, brokers, investors, surveyors, estate agents, developers, validation institutes, housing corporations, pension funds, government agencies, regulatory institutions, research companies and real estate funds.
The acquisition of Calcasa by ZPG creates the largest residential property valuation database in Europe and builds on Hometrack's leading position in the UK & Australia as an international property data platform. The combination brings together two of the best European modeling teams and property data solutions, creating significant opportunities by further enhancing our data expertise, product capabilities, and partner relationships.
Calcasa's market-leading AVM is deeply integrated into the valuation processes of the Netherland's top 10 lenders and has a 10+ year track record in the Dutch mortgage and real estate markets. Its best-in-class AVM has been analysed by the ECB, Dutch Central Bank and the major rating agencies and its quarterly House Price Index is a trusted publication on the state of affairs in the Dutch property market that receives national and local media coverage.
Calcasa has a strong financial track record with a subscription revenue model underpinned by long-term contracts with over 70% recurring revenues. The transaction is expected to be earnings & margin enhancing on an adjusted basis in the first full year
Calcasa has a world-class academic team of 15 based in Delft, Netherlands and following completion, Calcasa will continue to operate as a standalone brand and platform led by its founders Evert Van de Wauwer and Bas Meeuwissen, who will be remaining with the business.
Commenting on today's announcement Alex Chesterman, Founder & CEO of ZPG said, "We are delighted to announce the acquisition of Calcasa. The combination of Hometrack and Calcasa will give us unrivaled capabilities as an international property data platform and there is a clear opportunity to leverage our complementary products and relationships.
"This is another example of a transaction that fits perfectly with our strategy. Calcasa is a market leading business that we know well with strong underlying growth and which we believe will be even stronger under our ownership. And we are buying the business at a price that is accretive to our shareholders. We look forward to welcoming Evert and his team to the ZPG family."
Commenting on the Acquisition, Evert Van de Wauwer, CEO of Calcasa said, "We are very excited to become part of the wider ZPG business. We know the Hometrack team well and our combined data and enhanced products and services will deliver even more value to our partners. We are looking forward to helping to build on ZPG's data capabilities and further develop its international presence as the market leader for residential property data analytics."