Domain to consolidate digital listings power with CommercialView acquisition

Domain to consolidate digital listings power with CommercialView acquisition

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

Business success comes from thinking inside the box for TAXIBOX founder
Partner Content
On a first glance, the world of storage solutions might not seem particularly exciting ...
TAXIBOX
Advertisement

Related Stories

Space beer, crops and embryos: Saber unveils plans for International Space Station mission

Space beer, crops and embryos: Saber unveils plans for International Space Station mission

Australian space engineering company Saber Astronautics has today u...

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Artificial intelligence is increasingly being rolled out all around...

ACCC launches probe into misleading social media influencer posts

ACCC launches probe into misleading social media influencer posts

Australia's consumer watchdog is cracking down on social media ...

Takeover talks reignited between Tyro and Potentia Capital

Takeover talks reignited between Tyro and Potentia Capital

Talks of a potential takeover are back on between Sydney-based Tyro...