Move buys Relocation.com for $11.5 million
CAMPBELL, Calif. (AP) — Online real estate company Move Inc. has purchased Relocation.com for $11.5 million in cash in order to strengthen its offerings and moving services.
Relocation.com is a web site that helps home buyers and renters find moving and storage services.
Move, which runs Realtor.com, said Thursday that the buyout is part of its strategy of creating a one-stop online destination where users can find real estate listings and moving and storage services. The Campbell, Calif., company said the deal also helps with its increasing focus on the residential rental market.
Move says $9.5 million of the purchase price was paid upon the deal's closing. The remaining balance will be paid in two equal installments on the first and second anniversaries of the closing.
Move expects the transaction to add to its earnings in 2013 and contribute to 2012's fourth quarter revenue and earnings before interest, taxes, depreciation and amortization.
Move Inc. shares closed at $8.37 per share on Wednesday. Its shares are down 17 percent from their 52-week high of $10.06 set on March 26.