On-line classifieds giant Quikr is in advanced talks to acquire realty portal CommonFloor. The transaction is expected to close at around $160 million.
Tiger Global, an existing investor in both Quikr and CommonFloor, is expected to put fresh capital into Quikr through primary issuance of shares.
According to a TOI
report, in July, Quikr had completed a $60-million secondary round in which its existing investor Sweden’s Kinnevik and two new investors, hedge funds Falcon Edge and Coatue Management, participated, valuing it at $900 million. A secondary sale is when an existing investor sells shares to a new one at the company’s current valuation. The money does not come into the company’s coffers.
Existing investors in CommonFloor are Google Capital and Accel Partners, who will collectively get 10% stake in Quikr.
The CommonFloor deal is likely to have an 80 per cent stock and a 20 per cent cash component, the report said . Earlier, media reports had suggested that Quikr was picking up a majority stake in the Bengaluru-based real estate listing site, which has been in talks with potential investors but has been unable to raise funds. Founded in 2007, CommonFloor had raised roughly around $60 million (last round from Google Ventures). Quikr has in all raised $350 million in investments.