IPGA buys two Indonesian websites
- 30 May, 2011 10:43
Property website operator, IPGA Limited (ASX:IPP), has acquired two Indonesian web portals for up to $1.5 million in cash, plus shares.
The company has arranged to acquire PT Web Marketing, owner of Indonesia's largest property portal, rumah123.com.
Announcing the deal, IPGA said the site is the only Indonesian property portal to have successfully implemented a paid advertising model.
IPGA simultaneously agreed to purchase third-ranked property portal rumahdanproperti.com.
PT Web Marketing's portal draws 160,000 unique visitors per month, while the other has around 100,000 visitors per month.
The deal to buy PT Web marketing is for $1 million in cash and, subject to shareholder approval, seven million shares.
IPGA will meanwhile pay $300,000 immediately for rumahdanproperti.com, and hand over an extra $200,000 after 12 months if certain performance targets are met.
Both acquisitions are expected to be complete by 30 June.
IPGA also operates property portals in Hong Kong, Singapore and Malaysia, and has investments in India and the Philippines.
The company last year bought the owner of a Malaysian site for $2.1 million, as well as Singapore's SG-House.com.
IPP shares grew 12.9 per cent in Friday's trading to $0.700.