Zillow acquiring title company after shuttering closing division
The purchase of Spruce will allow Zillow to build “a tech-forward, high-volume title company for the future,” the company said.
Key points:
- Zillow is acquiring Spruce, a title and escrow company founded in 2016.
- The acquisition supports Zillow’s efforts to create a so-called “super app” that encompasses all the steps of a home purchase.
- In June, Zillow announced it was shuttering its closing services division and pursuing a better tech solution.
In pursuit of its goal to provide an end-to-end real estate experience, Zillow is acquiring a company to support the critical closing step.
The home search giant is currently in the process of acquiring Spruce, a tech-enabled title and escrow company. The plan is for Spruce to build a digital-powered closing services offering for Zillow customers and be a key component of its real estate "super app," which includes ShowingTime+ features.
"Title should never be a blocker to a great transaction, and our goal is for our customers to see and feel how much better the real estate transaction can be when they work with Zillow," said Matt Daimler, Zillow senior vice president of product, in a blog post announcing the company's intention to acquire Spruce.
"With Spruce, Zillow is building a tech-forward, high-volume title company for the future," said Daimler.
A Zillow spokesperson couldn't provide details beyond the initial announcement, noting that the company is in the early stages of acquisition and the deal hasn't officially closed.
"The acquisition is a strategic move in Zillow's efforts to steadily roll out products and services to create a seamless end-to-end home-buying experience for customers and partners," Zillow said in the announcement.
Earlier this summer, Zillow announced it was shuttering its in-house closing and title division and planned to "explore more tech-forward solutions" that would better serve its customers. The decision impacted about 80 roles supporting Zillow Closing Services.
Spruce CEO Patrick Burns, who founded the company in 2016, said they are excited to work with Zillow "in the ambitious mission to create the best closing solution for the modern home-buying process." The company is headquartered in New York City.