Zillow to buy Trulia for $3.5 billion

Zillow to buy Trulia for $3.5 billion

Zillow Inc. announced plans Monday to acquire Trulia Inc. in a $3.5 billion stock deal that will combine two behemoths in the online home purchase and rental search business.

The companies said they will continue to operate as separate sites and brands after the deal closes next year, but together, they will develop new mobile and Web products for consumer use and court more real estate agents to advertise on the sites.

The deal comes as the housing market is on the mend, haltingly, and traffic to real estate websites is on the increase. No one dominates that space more than Zillow and Trulia, whose combined, unduplicated audience was 68.4 million unique U.S. visitors in June,...