Reports are emerging that two of the largest online estate agents behind Purplebricks are in the final stages of merger talks.
It’s expected to be announced, in a matter of days, that Emoov and Tepilo have joined forces with another unnamed third-party estate agent to create a larger, more scalable business capable of challenging the dominant online estate agent, Purplebricks.
According to Sky News who broke the story, the new combined company would be floated on the stock market with a valuation in excess £100m if everything comes to fruition as expected.
Although the merger is expected to be announced shortly, a stock market listing wouldn’t be expected until the autumn when the investment bank, Cenkos Securities, is thought to be in pole position to lead the floatation.
Talks of mergers between online estate agents are nothing new. For some time it has been expected that some of the smaller agents would join forces to try and break the stranglehold that Purplebricks has on the online market.
However, this is the first time that two of the major rivals to Purplebricks have come so close to completing a deal.
What Does This Mean For Consumers?
Homeowners will have to wait and see exactly what impact the merger will have on the industry, should it go ahead.
However, on the whole, it would appear to be a positive thing for consumers. For too long, Purplebricks have been the dominant force in online agents despite several controversies around the firm, including an appearance on BBCs Watchdog programme.
Although it’s expected that both the Emoov and Tepilo brands will continue to operate, the combined marketing budget and the economies of scale they’ll achieve by working together means consumers who prefer the online model may start to finally feel like there is a viable alternative to Purplebricks.
The fact that both companies came above Purplebricks in our own online estate agent comparison also gives promise that the newly created group will only be a good thing for the broader market.
We’ll have more news on this story as and when the merger is officially completed.