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Purplebricks to venture into Canadian market for first time with £30mln acquisition of DPCF

Conquering North America has long been on the AIM-quoted company’s mind

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Purplebricks plans to pour another £15mln into DPCF once the acquisition completes

Purplebricks Group PLC (LON:PURP) is making its first foray into the Canadian market after agreeing to snap up fellow online estate agent DuProprio/ComFree for £29.3mln (C$51mln).

The move is part of Purplebicks’ ambition to conquer the potentially lucrative North American market, having already began to make its presence felt south of the border in the US.

READ: Purplebricks receives £125mln injection from Axel Springer

DCPF, which was founded in 1997, employs around 400 people and offers similar services to those sold by AIM-quoted Purplebricks.

Its main market is in Québec where it has a 20.2% share of the market. It also has a smaller market share in Ontario and western Canada.

Lat year, it generated revenue of £26.2mln (C$45.6mln) and turned an underlying profit (EBITDA) of £2.4mln (C$2.4mln).

Similar services

On top of the upfront cost, Purplebricks plans to pour a further £15mln into DPCF as it looks to quickly grow its market share in the Canadian market.

“DPCF developed a strong presence in delivering a flat fee, cost-effective, professional real estate service to the people of Canada, challenging the conventional agency market,” said chief executive Michael Bruce.

“Their model of bringing a range of service packages and support, with access to expertise from coaches to legal professionals, is proving highly attractive to the Canadian public, and has aspects in common with the Purplebricks' model and ethos in the UK, Australia and the US.”

He added: “Expanding the geographical footprint across Canada and building the company's buy-side offering provides the potential to transform the size of the DPCF business and consolidate its market leadership.”

READ: Purplebricks to launch in New York

Purplebricks’ move into Canada comes not long after the company opened for business in Los Angeles last September. That was quickly followed by roll-outs in San Diego, Sacramento, Fresno and New York.

Shares were 0.6% lower at 323.2p in late- morning trading in London.

Quick facts: Purplebricks

Price: 37 GBX

AIM:PURP
Market: AIM
Market Cap: £113.52 m
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