Purplebricks Group PLC (LON:PURP) said German digital publisher Axel Springer has bought an 11.5% stake in the online real estate agent.
Axel Springer’s investment, which values the stake at £125mln, includes a £100mln subscription for new shares.
Purplebricks said it will use the proceeds from the investment to support its US expansion, entry into new markets and to widen its service offering.
READ: Online estate agent Purplebricks plans to launch in New York in the second quarter of 2018
Axel owns well-known news brands such as Germany’s Bild and Die Welt as well as English-speaking news website Business Insider.
“The strategic partnership with Axel Springer is ground-breaking and will propel Purplebricks further towards our strategic goals and global ambition,” said Michael Bruce, the chief executive of Purplebricks.
However, shares in the company fell 5.3% to 294p in late morning trading as it warned revenue for the year ending April 2018 would be 5% lower than its previous forecast of £98mln.
The group said a slowdown in the UK property market and adverse weather in February and early March had dragged on its performance.