Jason Tebb, CEO of OnTheMarket has promised a new dawn following the acquisition of the formerly-agent-owned property portal by an American data and tech firm, CoStar.
After the completion of the deal with CoStar, Tebb posted a piece on social media saying he has taken some time to reflect on the portal’s ‘remarkable journey’.
He said: “As many of you will all be aware, Agents’ Mutual was formed in January 2013 with intention of creating a market-leading, national portal which would deliver services to its members at sustainably fair prices.
“The company was listed on AIM in February 2018 and raised circa £30m to fund its growth and continue to develop its proposition to achieve its original aim.”
Tebb, who joined as CEO in December 2020, says much has been achieved during his time in charge and there have been significant steps forward financially, operationally and strategically by the development of a ‘4 Pillar’ strategy of portal, software, data and market intelligence and consumer communication and monetisation’. This includes:
+ The development of a suite of products, services and functionality to help customers grow their businesses.
+ A new brand, new website and new TV creative.
+ A group of commercial partners which combine to offer incredible value to our customers.
+ OTM’s own software solutions
+ A focus on serious property seekers, with 71% of buyers reporting that they are confident they will purchase a property within 3 months (source: OTM PSI).
+ A focus on valuation opportunities for agents through our AVM and nurture services, resulting in a combined 95% increase in valuations over 2 years. (up 69% FY22 vs FY21 and a further uplift of 26% in FY23)
He commented: “Over the past 12 months, despite the unprecedented macro-economic turmoil, we have continued to develop the portal as a direct result of a focus on delivering valuable products and services to our customers, whilst still retaining our core values based on fair and sustainable pricing. Our growth has helped bring serious and tangible competition into the portal marketplace at a time when agents need it most.
“The strategic developments over the past few years have not only ensured the sustainability of the OnTheMarket portal, but placed the business in a perfect position to challenge the market leaders.
“We are truly grateful for the tireless support of our agents over the years. I have spent hundreds of hours listening to and engaging with thousands of our customers via my Town Hall meetings and individually. The feedback from these is almost unanimous; agents are pleased with our progress and are hugely supportive of our transformation and growth. But they want us to go even faster. With the support of our customers and the innovations and developments we have made to all aspects of the business, we have never been in a better position to do just that.
“We were founded by agents as a competitive response to the negative effects of a duopolistic market and ten years on from OnTheMarket’s inception, agents continue to be passionate about the need for real competition. But now we have the potential to be much more than ‘competition’. Collectively, we are in the best position to now invest heavily and challenge our competitors.
During our discussions it became very clear that a combination of OnTheMarket’s agent friendly platform with CoStar’s proven track record of transforming similar platforms across the world, was a powerful and industry leading collaboration. I was reminded of the original intentions of those brave group of agents who founded Agents Mutual. “To create a market-leading, national portal which would deliver services to its Members at sustainably fair prices.”
Tebb continued: “In my opinion, and as an ex-estate agent of 20 years, the collaboration between OnTheMarket and CoStar will enable us to deliver on this original aim.
“We, as a company, stand at the threshold of a truly transformative opportunity—an opportunity to further strengthen our foundations, amplify our potential, and redefine the future of our industry. Our intentions are clear and resolute, and now that we have joined forces with CoStar we can set about combining our collective brilliance into a powerful force of innovation and excellence.
“This new dawn for our business will continue to honour the legacy of OnTheMarket and its core ethos, while propelling it to new heights. We are driven by a shared vision of greatness, fuelled by the relentless pursuit of progress, and inspired by the extraordinary possibilities that lie ahead, to the benefit of our customers.
“CoStar will bring industry-leading global expertise and significant financial firepower to invest in OnTheMarket, allowing us to accelerate our plans. Our shared values and commitment to our customers will provide agents unparalleled value and greater opportunities to enhance their businesses.
“The acquisition is not merely a business transaction; it’s a pledge to do something truly transformational in the sector. It signifies our commitment to making a positive impact on the industry as a whole.
“We have built the foundations to become the number one property search site in the UK and now with CoStar’s technology, expertise and capital, this deal allows us to turbo charge our strategy and for the first time in our history, go head-to-head with the market leaders. I am truly excited by what we can achieve together. With the support of our agents, we will change the portal landscape, forever. The most exciting part of the journey is yet to come.
“Now is our time.”
CoStar founder and chief executive, Andy Florance, said the deal provides the opportunity to combine a “leading UK agent friendly site with our technology, expertise, and capital to raise the game for online home shopping in the UK.”
He added: “The current market leader has grown complacent focusing on margin over innovation, and pricing ahead of value. The level of shareholder support we received is a major endorsement of our plans to invest in OnTheMarket.”
““CoStar Group has been transforming the world’s real estate through digitization for over three decades. We are relentlessly focused on empowering our customers, delivering this through strong growth in our portals, as well as our data & information businesses. As we digitize the sector and continue to enhance the experience of all those we work with, we are also focused on our investments into Europe, a market that is moving very quickly.
“Our OnTheMarket acquisition sits firmly within this strategy, and we will bring all our experience to bear as we take OnTheMarket to new levels of success while keeping costs to advertisers at a sustainable level.”
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