Shares in ZPG (ZPG), owner of Zoopla, uSwitch, PrimeLocation and other digital brands, rose by over 30 per cent after receiving a cash offer from US investment group Silver Lake Management. The bid values each share at 490p – a 31 per cent premium to the group's share price the day prior to the announcement – and gives ZPG a market capitalisation of £2.2bn. The offer has been unanimously approved by the board of ZPG and The Daily Mail & General Trust, ZPG’s largest shareholder, amounting to irrevocable undertakings of around 31 per cent of the share capital.
Silver Lake acts as a strategic participant in the technology industry, and has built up a string of relationships with major technology companies that generate over $170bn (£125bn) annual revenue. The company reckons that ZPG has significant opportunities to increase investment in product and technology, including further acquisitions, but maintains that these would be difficult to implement while delivering consistent financial results as a publicly-listed company. Silver Lake has also identified additional potential takeover targets in the UK, which could explain the 6 per cent jump in Rightmove (RMV) shares on the same day as this news.
