Trulia buying Market Leader for more than $300M
Real estate website operator Trulia is buying real estate software provider Market Leader Inc. for more than $300 million in cash and stock.
Market Leader teams up with real estate brokerages and franchisors to help their agents manage their leads and convert those leads into closings.
Trulia said that the acquisition will enable it to provide more extensive services to brokerages and franchisors and help real estate agents increase their follow-up capabilities.
Trulia Inc. said Wednesday that it will pay $11.33 per share, which is an 18 percent premium to Market Leader's closing price Tuesday of $9.61. The companies said Market Leader shareholders will receive $6 per share in cash and 0.1553 shares of Trulia's common stock for each share they own.
Market Leader has about 26.8 million shares outstanding, according to FactSet. That would make the deal worth about $304 million. The companies value the deal at $355 million.
Market Leader will become a Trulia subsidiary, with the combined company based in San Francisco. Market Leader will still keep offices in Kirkland, Wash.
Both companies' boards unanimously approved the deal, which is expected to close in the third quarter. It still needs approval from Market Leader shareholders.