EQT picks up Idealista for €1.3bn

After a long period of speculation about the possible IPO of the Spanish technology company, the crisis caused by the Covid 19 pandemic finally led Apax and Idealista to lean towards a private sale. Following a tender between US venture capital firm KKR and EQT, as well as several months of virtual negociations, finally, last September, the Swedish fund took over 100% of the shares of the platform for €1.3bn. Jesús Encinar, founder and CEO of Idealista maintains his participation and will continue to lead the Madrid-based company together with his team.

In 2015 British private equity firm Apax Partners became a shareholder by buying 80% of Idealista's shares for a value of €273m. Five years later, the fund has multiplied its investment by almost five. The remaining 20% of the shares was held by brothers Jesús and Fernando Encinar and César Oteiza, founders of the real estate platform.

Relentless growth
Founded back in 2000, Idealista supports approximately 40,000 real estate agents and 38 million unique monthly visitors across Southern Europe by providing an online real estate classifieds marketplace for home buyers and sellers, with a particularly strong presence in Spain, Portugal and Italy. Its online platform and diversified portfolio of digital services, as well as customer relationship management, data analysis and online mortgage brokerage tools are some of the pillars of its business. The company closed 2019 with revenue of €37.06m, which represents 156.3% more than in 2018.

"Idealista closed 2019 with revenue of €37.06m, which represents 156.3% more than in 2018"

EQT Partners is a global investment company with over €62bn capital and 40 billion assets under management in 19 funds. It participates in companies in Europe, Asia-Pacific, USA and Canada that generate more than €27bn annually and create more than 159,000 jobs. EQT collaborates with its investees to achieve sustainable growth, operational excellence and market leadership.

Bert Janssens, partner and global co-director of TMT at EQT Partners, stated that "we are impressed by the market leadership position that Idealista has built over the past 20 years and EQT is excited to support Idealista and its business management team in this next stage of growth.”

Meanwhile, Jesús Encinar, founder and CEO of Idealista, highlighted the "excellent" relationship with Apax Partners and highlighted the "new path" for the real estate portal "with one of the most respected European funds.”

Spanish digital hub
Spain is currently bringing together all the circumstances to become the new European digital HUB, and Idealista's operation is undoubtedly a success that represents great news for the sector. Over the past few years, foreign investors have found Spain to be an interesting market to invest in, and this historic deal is clear proof of that.

Specifically, Madrid is the area that has concentrated most of this investment thanks to its geographical location, its high level of global connectivity and its ability to attract talent. All these factors position the capital as a candidate to become the next digital HUB for Southern Europe.