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U.S. real estate tech firm CoStar is reportedly pursuing a full acquisition of Australian property classifieds company Domain Holdings for AUD 2.7 billion (USD 1.72 billion). CoStar has already acquired 19% of Domain's shares at AUD 4.20 each, offering a 34.6% premium over its last closing price. Domain, majority-owned by Nine Entertainment, has yet to respond to the bid. CoStar's expansion follows recent acquisitions of Matterport and Visual Lease. If successful, the deal would mark CoStar's entry into the Australian market, potentially reshaping the real estate classifieds sector with its growing global footprint.
According to recently published property news, U.S.-based real estate technology company CoStar is gearing up for a potential acquisition of Australian property classifieds firm Domain Holdings, with a bid valued at approximately AUD 2.7 billion (USD 1.72 billion). Advertisement
CoStar has reportedly begun purchasing Domain shares at AUD 4.20 each, already acquiring around 19% of the company. A term sheet viewed by Reuters-without naming the buyer-indicates an intention to proceed with a full acquisition at the same price per share. This offer represents a 34.6% premium over Domain's recent closing price of AUD 3.12. The company's stock has seen a 23.3% increase so far this year.
Domain Holdings, approximately 60% owned by Australian media giant Nine Entertainment, has not issued a response to queries regarding the bid. CoStar also declined to comment on the matter. If the acquisition goes through, it would mark CoStar's first venture into the Australian market.
The potential takeover bid follows Domain's recent strong financial performance. The company reported a 28.3% rise in half-year profits, reaching AUD 33.1 million (excluding significant items), while its revenue for the same period grew by 7.4% to AUD 217.2 million.
CoStar has been actively expanding its global footprint through strategic acquisitions. In April 2024, the company announced a USD 1.6 billion deal to acquire Matterport, a leader in 3D spatial mapping, to enhance its property visualization capabilities. Later, in October 2024, CoStar finalized an agreement to acquire Visual Lease, a lease administration and accounting platform, further strengthening its real estate management services.
Domain Holdings has also demonstrated robust financial growth over the past year. In its 2024 fiscal report, the company recorded a 13.1% increase in revenue to AUD 391.1 million, with profits rising by 27.9% to AUD 49.4 million, excluding significant items. The surge was driven by an increase in new property listings, particularly in areas outside Sydney and Melbourne.
CoStar's interest in Domain Holdings signals its ambition to expand into the Australian market, which could reshape the local real estate classifieds landscape. The offer, significantly higher than Domain's latest trading price, highlights the U.S. firm's confidence in the company's growth potential. Given Domain's recent financial gains and strong market position, Nine Entertainment's response to the bid will be crucial in determining the deal's future. If successful, this acquisition would mark a major move for CoStar as it extends its global footprint into Australia's real estate sector.
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