Domain: A $1.7 Billion Target for CoStar's Ambitious Bid
Deal News | Feb 20, 2025 | Zawya
CoStar, the US-based online real estate firm, is gearing up for a significant acquisition by preparing a A$2.7 billion ($1.72 billion) offer to take over Domain Holdings, an Australian property classifieds firm. Approximately 60% of Domain is currently owned by the Australian media company Nine Entertainment. According to the inside information, CoStar has already begun accumulating shares at A$4.20 each, seizing control of up to 19% of the firm. The proposed offer represents a premium of 34.6% over Domain’s recent closing price of A$3.12 per share. If successful, this will mark CoStar’s first acquisition in Australia, potentially impacting its stock market performance and international presence. Domain recently reported a 28.3% rise in its half-year profits amounting to A$33.1 million, with revenue increasing by 7.4% to A$217.2 million. This move signifies CoStar's strategic expansion into international real estate markets, aiming to broaden its global footprint.
Sectors
- Real Estate
- Media and Communications
Geography
- United States – CoStar is a U.S.-based online real estate company involved in the potential acquisition.
- Australia – Domain Holdings is an Australian property classifieds firm, making Australia central to this transaction.
Industry
- Real Estate – The article focuses on the real estate industry, specifically regarding the operations of CoStar and Domain Holdings, both online real estate firms engaging in property classifieds.
- Media and Communications – Nine Entertainment, a significant shareholder in Domain Holdings, represents the media and communications industry which is also involved in the proposed transaction.
Financials
- $1.72 billion – The prospective amount CoStar is preparing to offer for Domain Holdings.
- 34.6% premium – The premium on Domain's closing share price at which CoStar plans to acquire the shares.
- A$33.1 million – Domain's half-year profit, which rose by 28.3% excluding significant items.
- A$217.2 million – Domain's revenue for the first half of the year, which rose by 7.4%.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CoStar | Bidding Company | Company | A U.S. online real estate firm listed on Nasdaq, preparing to make a bid for Domain Holdings. |
| Domain Holdings | Target Company | Company | An Australian property classifieds company in which CoStar is planning to acquire a controlling interest. |
| Nine Entertainment | Selling Company | Company | An Australian media group owning about 60% of Domain Holdings. |
| Reuters | News Source | Company | Provided the term sheet information and reported on the situation. |