In a deal that was widely anticipated, Zillow Group today announced plans to sell off its Market Leader business unit. The purchase price of $23 million from acquirer Constellation Software’s Perseus Division is a far cry from the $355 million that Trulia paid for the Bellevue-based real estate software business two years ago.
Zillow consumed Trulia — along with the Market Leader business — earlier this year in a deal valued at $2.5 billion. Shortly after the acquisition, Zillow disclosed that it was conducting a “strategic review” related to the Market Leader business.
Market Leader’s online tools are used by over 100,000 real estate agents and brokers to better track and manage leads.
“Market Leader provides the real estate industry’s leading customer relationship management system and is an important tool for tens of thousands of agents and brokers,” said Zillow CFO Kathleen Philips in a release. “Since we closed our acquisition of Trulia, we’ve been assessing how Market Leader would fit with our broader business strategy, and we felt that Market Leader’s customers and employees would be best served by a company with deep roots in delivering enterprise software, and by a company for whom Market Leader would be a core offering.”
Toronto-based Constellation Software is described as an “international provider of market-leading software and services,” employing 9,200 worldwide. The deal is expected to close early in the fourth quarter.
During the second quarter, Market Leader saw its revenues decline by 21 percent to $12.5 million.
Market Leader employs 102 people, and a spokesperson for Zillow said that Perseus would address plans for the company once the deal is consummated.
“However, we chose Perseus as the buyer because they’re excited about investing in Market Leader products, supporting its customers and continuing to work with Market Leader employees,” the spokesperson said.