PropertyGuru to be acquired for US$1.1 billion and taken private

SINGAPORE: PropertyGuru has agreed to be acquired by an Asian investment firm, after which its shares will cease trading on the New York Stock Exchange and it will become a private company.

The Singapore-based property technology company said on Friday (Aug 16) that the acquisition by EQT Private Capital Asia will be made in an all-cash transaction that values the company at an equity value of about US$1.1 billion (S$1.5 billion).

When the deal goes through, each ordinary share of the company issued and outstanding immediately before the acquisition will be cancelled and converted automatically into the right to receive a cash amount equal to US$6.70 per share, without interest.

This amount represents a 52 per cent premium to PropertyGuru's closing share price on May 21, the last unaffected trading day before media speculation about a potential transaction, said the company.

It added that the amount also represents a 75 per cent and 86 per cent premium to PropertyGuru's 30-day and 90-day volume-weighted average share price respectively for the period ending May 21.

PropertyGuru's board of directors had unanimously approved and resolved to recommend the approval of the deal by the company's shareholders, it said. 

The company expects the transaction to close in Q4 2024 or Q1 2025, subject to customary closing conditions, including approval by PropertyGuru's shareholders and regulatory approval.

"With EQT's significant experience in the technology, online classifieds and marketplace sectors, we aim to further strengthen PropertyGuru's platform, driving enhanced innovation and deeper engagement with its consumers, customers and stakeholders," said Janice Leow, partner in the EQT Private Capital Asia advisory team and head of EQT Private Capital Southeast Asia.

PropertyGuru's headquarters will remain in Singapore after completion of the deal, said the press release.

First launched in Singapore in 2007 as a digital property marketplace, PropertyGuru has over the years expanded into other markets including Indonesia and Malaysia, as well as other verticals such as home loans. 

It began trading on the New York Stock Exchange on Mar 18, 2022 following a merger with a special purpose acquisition company.

In February 2024, the company laid off 79 workers, citing a "comprehensive review" of operations, said its group CEO and managing director Hari V Krishnan. 

PropertyGuru currently hosts more than 2.8 million real estate listings and serves more than 34 million property seekers every month.