Purplebricks wraps up Canadian acquisition

Online estate agent Purplebricks has completed its C$51m acquisition of Canadian peer DuProprio/ComFree.

DPCF has a 20.2% share of the real estate market in Quebec and has more recently launched into new territories, with a 2% share in Ontario and 2.3% in Western Canada.

Purplebricks said the business presented an attractive opportunity to rapidly grow its share of the Canadian market, enhance its customers' experience through its "market-leading" model and to start capitalising on an extensive buy-side revenue opportunity in the North American nation.

In addition, Purplebricks noted that DPCF's valuation was attractive based on its strong market position in the Canadian real estate sector, "impressive" revenue growth since launch and its underlying profitability.

In 2017, DPCF reported total revenues of CAD $45.6m and earnings before interest, taxes, depreciation and amortisation of CAD $4.2m.

Michael Bruce, Purplebricks' global chief executive, said, "Following the successful strategic investment of £125m in Purplebricks by Axel Springer we are pleased to have made this acquisition of what is the leading digital real estate business in Canada."

"We are excited to help them build upon the substantial market share they have achieved in Quebec and started to build in other parts of Canada," he added.

As of 0915 BST, Purplebricks shares had ticked up 0.37% to 324.40p.