Big changes at OTM following £100m Co-Star acquisition

OnTheMarket (OTM) has revealed big changes in its senior line-up following its acquisition by US property giant CoStar for £100m.

The portal is now wholly owned by the UK subsidiary of CoStar following the ‘court sanction’ of the deal and agents and other investors will soon be getting their cheques in the post.

But the biggest change in the interim is at the top.

OnTheMarket has announced that business world senior and chairman, Christopher Bell, accountant and NED Ian Francis and former Savills senior (and NED) Rupert Sebag-Montefiore have tendered their resignations as directors.

Stepped down

All have stepped down from the board effective from 12th December.

In addition, CEO Jason Tebb, marketing chief Helen Whiteley and CFO Tom Carter have also resigned as directors of the company and stepped down from the board but will continue to be employed by in their current management positions.

CoStar seniors have stepped in to replace those leaving including financial group chief Scott Wheeler, Vice President Catherine Bland, European MD Matthew Green and short-lets chief in Europe, Robin Rossmann.

£46m marketing blitz

The remaining and new teams have some big spending to do. CoStar has said it intends to compete fiercely with both Zoopla and Rightmove with a £46 million marketing blitz this year alone, more than either of its rivals intend to spend.

Trading in OTM Shares on London’s AIM stockmarket was suspended with effect from 7.30 a.m. today, 12 December 2023. Following the application by OTM to the

London Stock Exchange, the cancellation of admission to trading of its Shares is expected to be effective as of 7.00 a.m. on 14 December 2023.

Duopolistic

Commenting on these final moves following the acquisition, Tebb says: “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 OTM’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.”

“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.”