Market Leader, a subsidiary of Constellation Software Inc., is a 17-year old company based in Bellevue, Wash. that provides sales and marketing tools to more than 200,000 agents, brokerages, and franchises across the U.S. and Canada. It started in 1999 as HouseValues.
Zillow sold Market Leader to Constellation Software for $23 million in 2015, a far cry from the $355 million that Trulia — now owned by Zillow — paid for the Bellevue-based real estate software business two years ago.
Diverse Solutions, meanwhile, provides plugins for an Internet Data Exchange or IDX, which lets real estate agents post MLS listings to their websites. The company has agreements with more than 600 MLS organizations in the U.S.
“This is a great fit for Market Leader and for the customers and partners of Diverse Solutions,” Market Leader President Scott Smith wrote in an email to users.
Zillow paid $7.8 million in cash and stock to purchase Diverse Solutions in November 2011. The company opened a new Orange County office after the deal, moving existing Diverse Solutions employees — who worked in the area — to the new building.
There was controversy after the acquisition, with some real estate groups cutting ties with Diverse Solutions after it was swooped up by Zillow, an industry behemoth.
Diverse Solutions customers will see no change to their product, billing, or support, Smith wrote in the email.
“We are excited by what we have seen with Diverse Solutions and how the products have become a core part of many agents’ online marketing strategy,” he added.
So, to recap: Zillow acquired Diverse Solutions in 2011. Trulia acquired Market Leader in 2013. Zillow acquired Trulia in 2015, and then sold Market Leader to Constellation Software. And Market Leader is buying Diverse Solutions from Zillow.
Zillow last month posted quarterly revenue of $208.4 million, a 31 percent increase over the same period last year and in line with the company’s expectations, though net losses swelled to $156.1 million. The company’s stock is up more than 20 percent in the past year.