Zillow Acquires Diverse Solutions
Online real estate marketplace Zillow has acquired Diverse Solutions, a six-year-old marketing tools start-up, for $7.8 million in cash and stock.
California-based Diverse Solutions develops property search and listing tools that real estate agents can put on their websites and blogs. Zillow, No. 930 on the 2011 Inc. 5000, said the acquisition will boost the company's ability to help real estate agents market themselves online.
"We're very impressed by the products and team that Diverse Solutions has assembled, and we look forward to offering agents these new solutions for powering their websites and marketing strategies," said Zillow CEO Spencer Rascoff in a statement. "With this acquisition, Zillow now can offer agents a broad suite of valuable tools to market themselves across the Web and mobile."
Earlier this year, in April 2011, Seattle-based Zillow acquired Postlets, an online real estate listing creation and distribution platform. The five-year-old Zillow then went public in July. It trades on the NASDAQ under the "Z" symbol.
Diverse Solutions has 18 employees and more than 6,000 customers, most of whom are real estate agents. Founder and CEO Justin LaJoie will join Zillow as vice president of industry solutions. Under the headline "Big Announcement Time," the company said in a blog post that it "couldn't be more excited," but that eveything would be "business as usual."
Separately, Zillow Wednesday reported record revenues in the third quarter of $19.1 million, up 132 percent year over year. It was the company's second earnings release as a public company.
The company lost $570,000 during the quarter, though if a charge of $1.7 million associated with its headquarters is excluded, profits would have been $1.2 million, or 5 cents a share.
Inc. contributing editor Courtney Rubin was for five years a London-based staff writer for People magazine. Rubin, a former senior writer for Washingtonian magazine, has written for the New York Times magazine, Time, Marie Claire, and other publications. She is the author of The Weight-Loss Diaries.