The British company is taking over the 70% of the Mallorca-based firm and with an option to buy the other 30% in four to five years' time. Homeserve has also announced the purchase of 40% from Checkatrade, which operates a similar portal to Habitissimo in the UK.
Habitissimo corporate finance analysis
Habitissimo is a Mallorca-based platform, founded in 2009, for contracting home renovations with 21,000 specialists from different trades. This company has received 4 small investment rounds for a total amount of $865.22k, its investors include Cabiedes & Partners, Faraday Venture Partners and PADEInvest.
Habitissimo currently operates in 8 countries. In 2010 it landed in Italy and the following year in Brazil, from there they have gone to countries such as Argentina, Mexico, Colombia, Chile and Portugal are other countries where they have landed. Now almost half of its turnover (3.5 million euros, representing 45%) comes from other countries.
Habitissimo has seen spectacular growth in recent years, reaching a turnover of €7.5M in 2016, a growth of 46% over the previous year.
Why did Homeserve become Habitissimo?
Homeserve, which is listed on the London Stock Exchange, specialises in emergency services and repairs. With the acquisition of Habitissimo, Homerserve is able to expand its target customers and also reach young customers who are unable to afford insurance and require immediate help from a wide variety of trades.
Moreover, with this operation, the British firm strengthens its presence in Spain, where it already has 1.2 million customers, thanks in particular to an agreement with the electricity company Endesa to sell insurance to its subscribers in the event of possible emergencies in homes. Homeserve also had a similar agreement with Agbar, which was cancelled last year. In the six months to September 2016, the British company had a turnover of €70.6 million in Spain and generated an operating profit of €5.9 million.
Homeserve has at the same time bought 40% from Checkatrade, a portal similar to Habitissimo operating in the UK. Both transactions amount to £37 million (€43 million).
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