) completed the acquisition of Mortech Inc. - a company that
offers software tools required in the mortgage industry. The
purchase consideration consists of $12 million in cash and
150,000 shares of restricted stock.
The acquisition, which was announced last month, enables
Zillow to offer promotion and productivity tools to professionals
in the mortgage industry. These tools will aid the mortgage
professionals in business management and conversion of
prospective borrowers into actual borrowers. Thus, the
acquisition should augment the growth of Zillow's loan market -
Zillow Mortgage Marketplace.
Zillow is constantly trying to expand its business through
acquisitions. Apart from Mortech, the company has acquired four
other companies over the last two years, and signed an agreement
to acquire one more. The company has acquired these entities to
widen its portfolio of marketing and business services for local
Last month, Zillow announced an agreement to acquire HotPads -
a rental and real estate search site. San Francisco-based HotPads
was launched in 2005 and has five mobile applications for
smartphones, apart from a website. The acquisition is projected
to close by the end of this month, subject to customary closing
Earlier in October this year, Zillow purchased internet and
phone-based shopping platform - Buyfolio. Also in June, the
company purchased RentJuice, which formed the basis for the
creation of Zillow Rentals.
In 2011, Zillow acquired Diverse Solutions - a company that
assists real estate agents in marketing and website development.
In the same year, the company also acquired Postlets - an online
platform for creating and distributing real estate lists.
Apart from growing inorganically, Zillow tries to innovate and
offer new services to its customers in order to expand its
business. For instance, the company launched a free market place
and product suite for rental professionals in October this year.
The product offering includes listing on the Zillow Rental
Network, which is the largest web-based rental network.
Zillow currently carries a Zacks #3 Rank (Hold). Peer
Market Leader Inc.
) also carries a Zacks #3 Rank.
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ZILLOW INC (Z): Free Stock Analysis Report
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