ITV PLC (LSE:ITV) has announced an investment of up to £4.5 million in online estate agent Purplebricks.
An agreement has been made for ITV to buy £1.5 million worth of convertible loan notes in Purplebricks owner Strike Ltd, the broadcaster announced on Wednesday.
Options are also available for an additional two tranches of £1.5 million each, ITV said, “in return for advertising inventory across ITV's channels and ITVX”.
This marks the first investment in Purplebricks since it was bought by rival Strike last year for £1 and marks ITV’s only media for equity purchase of the year so far.
“The powerful combination of Strike's consumer proposition, which allows homeowners to sell their house for free, together with the Purplebricks brand, makes the business a great fit for a media for equity investment,” ITV director Sheena Amin said.
ITV and Purplebricks have previously partnered, with a product placement deal being agreed for Coronation Street in 2021.
A new Purplebricks television advertising campaign will get underway this summer following the investment, ITV added.
“The process for buying and selling properties hasn't changed in almost 200 years, but thanks to Purplebricks, customers are now able to sell their home for free, with no hidden costs,” the estate agent’s chief executive, Sam Mitchell, said.
“ITV will help us take that message to homes across Britain as we continue to build on the strong momentum of the past six months.”