Purplebricks an Axel Spring form joint venture to acquire stake in Homeday
The UK-based online estate agent, Purplebricks, has formed a joint venture with the German publishing house, Axel Springer.
The joint venture was created to acquire a 25.9% stake in the Germany-based online estate agent, Homeday.
The partners’ company, Newco, has been valued at €25.4mn (US$29.4mn), of which 50% is owned by each business.
The UK firm will acquire a 12.9% stake in Homeday, buying the shares from Axel Springer for €12.7mn ($14.72mn).
Purplebricks is expanding its operations outside of the UK, targeting the largest economy in Europe and a nation with a fast-growing market.
The firm is also aiming to expand across continental due to the uncertainty surrounding Brexit in its home country.
The firm has launched in Australia, Canada, and the US since it was founded in 2012.
“Although the online market in Germany is still small, it is a fast-growing market and Homeday has developed rapidly to become the market leader in just four years, achieving close to 50 percent market share of the online space,” state Purplebricks.