In a move viewed buy many to capture a piece of the online real estate space and to gain some earnings along the way, Realogy (NYSE:RLGY) is buying ZipRealty (NASDAQ:ZIPR) for $166MM in an all cash deal. The $6.75 per share valuation is a huge premium against today’s close of $3.02 per share.
The purchase includes 23 U.S. offices that make up it’s brokerage and also includes Zip Realty’s real estate technology platform. Last year Zip Realty closed $2.7B in property sales at the 23 offices, generating $76 million in revenue and gross profit totalling $32 Million. The move is expected to add about $20 million per year in earnings to their operations.