Property portal Domain (ASX: DHG) today announced it has entered into an agreement to acquire property data business Insight Data Solutions (IDS) in a deal worth up to $159 million.
Established in 2013 and founded by Louie Psaroulis and Mike Thanos, IDS operates a property valuation platform which manages 28 per cent of the national statutory valuation volume, with leading positions in Victoria and the City of Adelaide.
Initial consideration payable at completion of the agreement is $60 million in cash, but if IDS achieves certain commercial and financial outcomes the maximum consideration payable will be $159 million.
According to Domain CEO Jason Pellegrino the acquisition establishes the property search platform as a leading provider of land and property valuation, insights and analytics services, and significantly expands the size of its property data segment.
“We are pleased to welcome IDS to the Domain Group. IDS brings rich experience in building property data platforms and delivery services to support the workflow requirements of Governments, particularly in regards to land valuations,” Pellegrino said.
“Federal, State and Local Governments will always play a central role in Australia’s property ecosystem. IDS’ platforms, workflow tools and property analytics allow Governments to make more timely, accurate and nuanced decisions regarding land valuations, land use, tax policy and revenues.
“The importance of these services is likely to amplify as Governments deal with increasing land scarcity, the challenges of housing affordability and planning policy, increased infrastructure investment and the transition of revenue from transfer duties to annual levies based on land valuation”.
As part of the transaction, the company’s founders will remain with the business to continue to drive the IDS strategy.
"We are excited that our business is joining an organisation of Domain’s calibre and capability,” the founders said.
“Domain’s unique data assets and extensive industry reach will enable us to accelerate the evolution of our product offerings to government and corporate customers.
“IDS and Domain are a natural fit with a shared vision to deliver leading property data and analytics to the Australian market. We look forward to working closely with their leadership team”.
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