Homestore.com to Buy IPlace

Aug 10 2001

WESTLAKE VILLAGE, Calif., Aug 10 - Homestore.com Inc. <HOMS.O> a large Web-based real estate services firm, said on Friday it plans to buy iPlace Inc. for $150 million to add online credit and neighborhood information to its list of services.

The purchase price for privately held iPlace includes $70 million in cash, with the rest in Homestore stock. Homestore.com said it expects the deal to close in the third quarter.

"Like Homestore, iPlace is one of the few companies to establish a successful subscription business on the Internet," Homestore Chairman and Chief Executive Stuart Wolff said in a statement. "We believe the product lines will fit very well strategically, and the combined traffic significantly extends the reach of our network of Web sites."

Langhorne, Pennsylvania-based iPlace has more than 600,000 paid subscriptions. Homestore said the combination would move its network of Web sites into the top 20 most visited Internet networks.

Shares of Homestore closed Thursday at $24.05 on Nasdaq. The stock has a 52-week high of $55 and a low $16.3750.

Last month, regulators determined that Homestore.com's acquisition of move.com, a unit of franchise group Cendant Corp. <CD.N> did not violate U.S. antitrust laws. That deal calls for Cendant to take a 16.9 percent stake in Homestore.com. Cendant's holdings include Century 21, Coldwell Banker and ERA Realtors.

Homestore.com also sells software to real estate brokers, and to corporations to help with moves, relocation and tax issues.