Zoopla's parent group ZPG looks set to be taken over by US private equity firm Silver Lake for £2.2bn

Lucy White
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Zoopla owner ZPG has recommended shareholders accept the offer (Source: Getty)

Zoopla's parent group ZPG, which also owns businesses such as uSwitch and PrimeLocation, has recommended shareholders accept a £2.2bn takeover offer from US private equity firm Silver Lake.

ZPG announced this morning that it had agreed the terms of a 490p per share cash offer, a premium of 31 per cent to the company's share price before the offer was made.

Zoopla's largest shareholder DMGZ, a group company of the Daily Mail and General Trust (DMGT) which owns almost 30 per cent, has already given irrevocable undertakings to accept the deal. Its share price shot up by more than five per cent in early trading.

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DMGT's chief executive Paul Zwillenberg said the deal would deliver a "very significant return" for his company. The actual sale will rake in £640m, bringing DMGT's total cash returns from the investment to £890m – more than 14 times the initial cost.

Silver Lake needs to get 75 per cent of shareholders on side for the deal to go ahead.

"Since its IPO in 2014, ZPG has evolved and diversified as we have made significant progress in becoming the platform of choice for consumers and partners engaged in property and household decisions," said ZPG's founder and chief executive Alex Chesterman.

"The terms of the acquisition represent an attractive premium that recognises the quality of ZPG's businesses and the strength of its future prospects, and allows shareholders to realise today in cash the potential future value of their holdings."

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Silver Lake does not plan to axe a "material" number of jobs following the acquisition, the firm said.

"ZPG is a great growth technology company. It has established strong positions in property classifieds, home and financial services markets by innovating in product and marketing," said Silver Lake's Simon Patterson.

Westhorpe, a subsidiary of Singaporean sovereign wealth fund GIC, and Canadian pension fund PSP will also take a minority stake by coinvesting in ZPG with Silver Lake.

Technology-focused Silver Lake already has around $39bn in assets under management.

DMGT was advised by investment bank Lazard.

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