Zillow (Z) to Sell Market Leader for $23M

September 3, 2015 4:46 PM EDT

Zillow Group (Nasdaq: Z) announced the pending sale of Market Leader to the Perseus Division of Constellation Software, Inc., an international provider of market-leading software and services, for $23 million. The sale is expected to close early in the fourth quarter.

"Market Leader provides the real estate industry's leading customer relationship management system and is an important tool for tens of thousands of agents and brokers," said Kathleen Philips, Zillow Group chief financial officer. "Since we closed our acquisition of Trulia, we've been assessing how Market Leader would fit with our broader business strategy, and we felt that Market Leader's customers and employees would be best served by a company with deep roots in delivering enterprise software, and by a company for whom Market Leader would be a core offering. We chose Constellation as the buyer because they are excited about investing in Market Leader products, supporting Market Leader customers, and continuing to work with Market Leader employees. We will continue to partner with Market Leader through Zillow Tech Connect, which sends Premier Agents' leads into any CRM of their choosing."

"Market Leader has a proven history of delivering excellent tools and services and comes with a great team of people behind the product," said Dexter Salna, president of Perseus. "We see an incredible opportunity to take the solid foundation that already exists to invest and grow Market Leader's products, services and employees."

Market Leader became part of Zillow Group through Zillow Group's acquisition of Trulia®, which closed in February 2015. The company is based in Bellevue, Wash., and has 102 employees. The other lead generation businesses housed within Market Leader are being sold as well, including Market Leader Leads Direct and HouseValues.com.

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