Saturday, October 13, 2012

Move to Acquire Relocation.com - Zacks.com

Move, Inc. (MOVE - Snapshot Report) recently announced that it is set to acquire Relocation.com for $11.5 million in cash.?

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Of the total purchase price, $9.5 million will be paid on the closing of the deal while the remainder will be paid in the coming two years.?

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The acquisition will be accretive to the top line and EBITDA in the fourth quarter of 2012 and start contributing to the bottom line by 2013.?

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Relocation.com is an online marketplace that assist people in relocation places, primarily connecting home buyers and people taking houses on rent with moving and storage professionals.?

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The combination of Move's existing Moving.com business and Reloaction.com will significantly strengthen Move?s position as a dominant player in moving services.?

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The recent acquisition is another step forward toward Move?s strategic goal of creating a one-stop destination for comprehensive and accurate real estate listings as well as providing adjacent services like moving and storage that enhances the real estate process for consumers.?

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In addition, the acquisition will broaden Move's focus on the residential rental market, which in the U.S. is expected to add five to six million households in the next decade.?

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Meanwhile, Move remains focused on creating a comprehensive online marketplace for real estate related information and services. Relocation.com works with pre-screened and licensed moving, auto transport and storage companies across the country to ease the relocation process. The combined services of Relocation.com and Moving.com will provide users with a wide array of services and expand Move?s market considerably.

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Last month, the company increased its guidance on the back of TigerLead Solutions, LLC acquisition for $22 million.?

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TigerLead Solutions provides a comprehensive online solution for generating and managing homebuyer and home seller leads. Management expects the acquisition of TigerLead to broaden Move?s lead generation product tool and empower Move to deliver a complete suite of end-to-end solutions. These solutions will help real estate professionals connect with consumers and grow their businesses.

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TigerLead has added to the already impressive product portfolio of Move, which already include REALTOR.com, ListHub, and Top Producer CRM. TigerLead will complement the leads generated by REALTOR.com. ?

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Management believes that a positive sign for its business and the industry as a whole is that even while the number of homes for sale has declined over the past several years, consumer engagement continues to increase.

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We continue to maintain an Outperform recommendation on Move. Our recommendation is supported by a Zacks #2 Rank, which translates into a short-term rating of Buy.?

Read the full analyst report on MOVE

Source: http://www.zacks.com/stock/news/84705/move-to-acquire-relocationcom

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