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Onthehouse Holdings Ltd share price soars on takeover

The Onthehouse Holdings Ltd (ASX: OTH) share price has jumped 16.9% to 82.5 cents after the company agreed to a takeover offer today.

The company says it has entered into an agreement which will see shareholders receive a cash payment of 85 cents per share.

The bidder is a consortium of companies, including subsidiaries of Macquarie Group Ltd (ASX: MQG) and entities associated with directors Daniel Dempsey and Michael Dempsey.

Onthehouse has a number of businesses, but was probably most widely known for residential property website Onthehouse.com.au – but the company sold that – along with Residex and REAN – to CoreLogic for $3 million.

When dominant rivals REA Group Limited’s (ASX: REA) realestate.com.au and Fairfax Media Limited’s (ASX: FXJ) Domain introduced many similar features to Onthehouse.com.au, it was virtually game over for the consumer-based website.

The little-known real estate software division (Console SaaS platform) was Onthehouse’s focus following that sale. That software provides real estate agents with office administration, property sales and management applications, online advertising solutions and other business performance tools.

Shareholders should be happy that the ongoing dramas have finally resulted in a profitable ending for most.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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