CoStar Group has secured approval from Nine Entertainment, Domain Holdings’ parent company, for a significant $3 billion acquisition deal that will take the Australian digital real estate company private. CoStar, a U.S.-based real estate information provider, had already acquired 16.9% of Domain and will now purchase the remaining 83.1% of shares under a Scheme of Arrangement, pending approval by Domain shareholders.
The deal, valued at an implied enterprise value of A$3.0 billion (US$1.92 billion), offers Domain shareholders A$4.43 per share. This price represents a substantial premium: 42% above Domain’s share price before CoStar’s initial offer in February, 50.2% above the one-month volume weighted average price, and 59.7% above the three-month volume weighted average price.
The Domain Board has unanimously endorsed the transaction, recommending shareholders approve the deal, assuming an Independent Expert concludes it’s in their best interest. Nine Entertainment, which owns 60% of Domain, has also agreed to vote in favor of the proposal at a shareholder meeting scheduled for mid-August, conditional on the same expert review.
Nick Falloon, Domain’s Chair, expressed confidence in the deal’s benefits, noting that CoStar’s support would enhance Domain’s already strong fundamentals. CoStar had gained access to Domain’s data and entered an exclusivity agreement in March, paving the way for today’s binding offer.
The acquisition is subject to approval from the court and the Foreign Investment Review Board. Domain shares saw a slight increase following the announcement, trading at A$4.38, up 2.94%, with a company valuation of A$2.76 billion.
Domain, originally launched by Fairfax Media in 1999, went public in 2017, and Nine retained control after merging with Fairfax in 2018.
For further updates on this deal, stay tuned for shareholder votes and regulatory approvals in the coming months.
CoStar Group HQ in Arlington, VA Picture on Wikimedia by Gian Lorenzo Ferretti
