Now under the majority ownership of Nine Entertainment (ASX: NEC), property listings giant Domain Group (ASX: DHG) is set to take on more online territory with the purchase of CommercialView.
The deal could be valued anywhere between $4.2 million and $17.2 million depending on various targets, and would give Domain access to a platform supported by some of Australia's leading commercial real estate agencies in Victoria and New South Wales.
The purchase is set to take place through subsidiary Commercial Real Estate Media (CREM), with a transaction target of 21 December 2018. CREM is 70 per cent owned by Domain with the remaining stake held by members of the commercial real estate industry including leading international brands.
"Commercial Real Estate has seen tremendous growth in the last three years, benefiting its customers, shareholders and the broader industry," says Domain CEO Jason Pellegrino.
"The unanimous support for the transaction from CommercialView shareholders is a strong vote of confidence in the upside potential of our Commercial Real Estate business."
The on-target consideration is $10.2 million, which is equivalent to four times the projected increase in EBITDA from the transaction for calendar year 2020, including synergies.
The consideration is payable in three tranches, partially contingent on targets relating to the future financial performance of the CREM and CommercialView businesses.
Domain saw 20 per cent growth in digital revenue in FY18 despite the downturn that has been witnessed in major housing markets. It competes directly with market leader REA Group (ASX: REA), owned by another media powerhouse News Corp (ASX: NWS).Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support