LoopNet Inc., which operates the largest commercial real estate marketplace online, on Thursday announced it acquired privately held Cityfeet.com for an aggregate cash consideration of $15 million, with an additional potential future consideration of $3 million cash if certain performance targets are met.
Cityfeet operates an online distribution network for commercial property listings that are sent to more than 100 partners, including the Web sites of the New York Times, Boston Globe, Los Angeles Times, Chicago Tribune, Dallas Morning News and Atlanta Journal-Constitution.
“The combination of LoopNet and Cityfeet.com will bring great benefits to both LoopNet and Cityfeet customers,” Richard Boyle, LoopNet’s CEO and president, said in a statement. “By bringing together the largest online marketplace and the largest distribution network, we will be providing unmatched exposure opportunities for both LoopNet and Cityfeet commercial property listings.”
LoopNet expects that Cityfeet will add approximately $1 million in revenues to LoopNet for the remainder of 2007. While Cityfeet has been consistently profitable as a standalone business, LoopNet expects the transaction to have no significant impact on 2007 EBITDA, and to be dilutive to 2007 EPS in the range of approximately ($.02) per diluted share due to various acquisition related expenses. Impact on the company’s financials beyond 2007 will be incorporated in the guidance given for 2008.