OnTheMarket has agreed to a £99m all-cash takeover by US-based CoStar Group at 110p per share.
OnTheMarket shares were trading up 52% at 107p at the time of writing on Thursday.
“OnTheMarket is the latest UK stock to receive a takeover offer, making it feel like a near-daily event as private equity and trade players seek to take advantage of cheap valuations on the UK market,” said Russ Mould, investment director at AJ Bell.
“Shareholders are being offered a chunky 56% premium to last night’s closing price by CoStar. It’s a classic move – a US business that is already an expert in the same sector is using the acquisition of a London-listed stock to expand into a new segment of the UK market. In CoStar’s case, the deal will give it a foot in the door for the UK residential property sector.
“OnTheMarket was set up as a rival to Rightmove and Zoopla, and while it didn’t necessarily cause those businesses too much stress, it did make slow but steady progress.”
OnTheMarket also released their half-year results on Thursday, revealing a 1% increase in revenue to £16.8m for the six months to 31st July.
Competitor Rightmove recently announced a 10% jump in revenue to £179.5m for the six-month period to 30th June.