Follow Up Boss Acquisition: Key Details, Impact, and What Comes Next

Zillow's acquisition of Follow Up Boss marks a significant move in the real estate industry. Announced in November 2023 and finalized in December, this acquisition aims to enhance the tools available to real estate agents and teams. By integrating Follow Up Boss's CRM capabilities, Zillow seeks to streamline agent workflows and improve client experiences, all while maintaining brand independence and data privacy.

What Is Follow Up Boss?

Founded in 2011, Follow Up Boss is a real estate CRM and team management platform. It centralizes leads and contacts, automates follow-ups, and provides tools for team coaching and performance tracking. Unique in its open platform, Follow Up Boss offers over 250 integrations, advanced reporting, and 24/7 support. Its ease of use and transparent pricing, with no contracts or hidden fees, make it a standout choice for real estate teams.

Who Acquired Follow Up Boss?

Zillow operates as a comprehensive real estate and rental marketplace, providing a platform for buying, selling, and renting homes, as well as obtaining home loans. Key services include real estate listings, home loans, agent finder, rental management, advertising, and property value estimates known as Zestimates. As a leading player in the industry, Zillow holds real estate brokerage licenses across North America, making it a central hub for real estate transactions and information.

When Was Follow Up Boss Acquired?

Zillow announced its acquisition of Follow Up Boss on November 1, 2023, and finalized the deal on December 8, 2023. This acquisition aligns with Zillow's strategy to enhance its technological offerings for real estate professionals. The timing is significant as it follows a major legal event affecting the real estate industry, specifically the Sitzer/Burnett class action lawsuit verdict against the National Association of Realtors, which impacted Zillow's stock price. This move aims to bolster Zillow's position amidst industry shifts.

Why Was Follow Up Boss Acquired?

• Market Expansion: The acquisition of Follow Up Boss by Zillow is a strategic move to expand Zillow's market presence and enhance its service offerings to real estate agents. By integrating Follow Up Boss, Zillow aims to simplify and improve the tools available to Premier Agent partners, thereby expanding its influence and market reach within the real estate industry.
• Technology Integration: Follow Up Boss offers over 250 integrations, allowing agents to build a custom technology stack that fits their business needs. The acquisition will accelerate investments in new features, enhancing productivity and providing seamless integration with other tools and platforms used by real estate agents.
• Competitive Advantage: By acquiring Follow Up Boss, Zillow strengthens its competitive position in the real estate market by adding a popular and effective CRM tool to its portfolio. This move is expected to improve the overall user experience for agents and brokers, making Zillow's platform more attractive and comprehensive. The acquisition also helps Zillow to consolidate its market position and fend off competition by offering a more integrated and technologically advanced solution.

Acquisition Terms

• Acquisition Price: Up to $500 million ($400 million in cash upfront plus an additional $100 million cash earnout).
• Payment Method: Cash consideration.
• Key Conditions or Agreements:
  • Follow Up Boss will remain an independent brand and standalone product.
  • The 100 employees of Follow Up Boss, including co-founders Dan Corkill and Tom Markov, will join Zillow.
  • Customer data entered into Follow Up Boss remains the property of the customers and will not be accessed or used by Zillow Group without permission.
  • Follow Up Boss will continue to support its ecosystem of third-party integration partners.
  • Security and customer data privacy are top priorities, with ongoing third-party validation to ensure data protection.
  • Existing integrations between Zillow and Follow Up Boss will remain in place, along with 100 other integration partners.

Impact on Follow Up Boss

The acquisition of Follow Up Boss by Zillow has led to several operational and management changes. Follow Up Boss will continue to operate as an independent brand, ensuring continuity in its mission and services. Co-founders Dan Corkill and Tom Markov, along with their team of 100 employees, will join Zillow, maintaining leadership stability. This transition allows Follow Up Boss to leverage Zillow's resources for further innovation while preserving its core values and operational autonomy.

Product offerings and services are set to benefit significantly from the acquisition. Follow Up Boss will continue to provide its existing products with enhanced resources for faster feature development and improved customer support. The integration with Zillow's ecosystem will accelerate the introduction of new tools and functionalities, ensuring that agents can manage their leads and contacts more efficiently. Customer data privacy remains a top priority, with strict measures in place to protect user information.

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