Trulia Inc. has agreed to acquire real-estate-focused software maker Market Leader Inc. for about $355 million in cash and stock, according to reports released Wednesday.
Trulia Chief Executive Pete Flint characterized Market Leader as "an excellent strategic fit for Trulia," pointing to the software company's partnerships with real estate franchisors and brokerages.
According to the companies, Market Leader's shareholders will receive $6.00 in cash and 0.1553 shares of Trulia's common stock for each share of Market Leader common stock under the terms of the agreement that was unanimously approved by the boards of directors of both companies.
The purchase price represents an 18% premium to Market Leader's closing share price of $9.61 on Tuesday, May 7, 2013.
The acquisition is subject to the approval of the holders of a majority of the shares of Market Leader's common stock, as well as customary closing conditions, including regulatory approvals.
Trulia has been working to make it easier for consumers who are out and about looking at homes to buy to access relevant real estate data on their mobile devices.
The combined company will be headquartered in San Francisco. It will have about 46,000 subscribers, which Trulia noted is more than any other company in the online real estate marketplace.
The deal is expected to close in the third quarter.
