LONDON, UK: Purplebricks Group plc, the online estate agent, has announced that it has agreed to sell its business and assets to Strike, a rival digital property platform, for £1 and the transfer of its liabilities.
The deal follows a strategic review and a formal sale process that failed to attract any other suitable offers.
Purplebricks said that the sale would result in a small return to its shareholders and would allow the company to preserve its brand and business for the benefit of its customers, employees, funding partners and other stakeholders.
The company said that it would retain its cash balance of up to £5.5 million and distribute the net cash proceeds after deducting certain costs and expenses to its shareholders following the completion of the sale and a members’ voluntary liquidation.
The sale is subject to the approval of Purplebricks’ shareholders at a general meeting expected to be held in early January 2023. The company said that its board unanimously recommended the sale as the best option for the company and its shareholders.
Purplebricks was founded in 2014 and aimed to disrupt the traditional estate agency model by offering a fixed-fee service and online platform for selling and buying properties. However, the company faced challenges from increasing competition, regulatory changes, customer complaints and operational issues. The company also expanded into Australia, Canada and the US, but later exited these markets after incurring losses.
Strike was launched in 2019 as Housesimple and rebranded in 2020. It offers a free service for sellers and makes money from ancillary services such as mortgages, conveyancing and insurance. The company claims to have sold over £2 billion worth of properties since its inception and operates across England and Wales.
“We are pleased to announce the Proposed Sale of Purplebricks,” said Michael Bruce, Chief Executive Officer of Purplebricks. “This transaction represents a good outcome for our shareholders, employees and other stakeholders. We believe that Strike is the right partner to take Purplebricks forward and we look forward to working with them to build on the Company’s success.”
“We are excited to acquire Purplebricks,” said David Sofer, Managing Partner of Strike. “We believe that Purplebricks has a strong brand and a talented team. We look forward to working with them to continue to grow the business and deliver value for our shareholders.”
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