CoStar Set to Offer $1.72 Billion to Acquire Australia's Domain Holdings

CoStar's strategic move to expand its global footprint with a $1.72 billion bid for Domain Holdings / Reuters

U.S.-based real estate analytics giant, CoStar Group, is preparing a major offer of A$2.7 billion (approximately $1.72 billion) for Domain Holdings, Australia's premier property classifieds company. This bid follows CoStar's ongoing expansion efforts in global markets and highlights its growing influence within the real estate sector.

The acquisition offer represents a significant 34.6% premium over Domain’s recent closing price, which was A$3.12. CoStar has already begun acquiring shares at A$4.20 each, securing up to 19% of Domain's shares. The bid comes at a pivotal moment as CoStar is seeking to establish a stronger presence in the property technology and digital real estate advertising industry, which is rapidly evolving.

CoStar’s move is part of its broader strategy to consolidate its leadership position in real estate data and online property listings. By acquiring Domain, CoStar would further solidify its foothold in international markets, following its recent acquisitions, including Homes.com in 2021. This bold step aligns with CoStar’s goal of increasing its global market share, particularly in the digital real estate platform space.

Despite the magnitude of the deal, neither CoStar nor Domain have issued official statements or comments on the takeover bid. Sources close to the matter have shared that CoStar’s intentions are clear with an offer price of A$4.20 per share, a valuation that reflects a robust commitment to the acquisition process.

Domain, known for its robust digital presence in Australia’s property classifieds market, is one of the country’s top platforms for real estate listings, rivaling other established players. The potential acquisition is expected to shake up the Australian real estate market, offering a new wave of competition and innovation in the property tech space.

With this proposed acquisition, CoStar is set to play a pivotal role in shaping the future of real estate advertising in both Australia and beyond, positioning itself as a dominant global player in online property listings and real estate data services.

While the deal is not yet final, it is a clear signal of CoStar’s aggressive expansion strategy and its desire to tap into new markets where property technology continues to thrive. Should the deal proceed, it will significantly alter the competitive landscape within the real estate industry.