CoStar to Acquire Domain for $1.92Bn Subject to Shareholder Approval

CoStar has agreed to acquire Australian property portal Domain in a deal worth A$3 billion (US$1.92 billion), including debt. The move would give the U.S.-based real estate giant full control of a key challenger brand in the Australian market, and marks its latest international expansion into residential property classifieds.

Domain confirmed the all-cash offer of A$4.43 per share on Friday, up from CoStar’s initial A$4.20 bid in February. The revised price implies a 49% premium over Domain’s share price prior to the first bid and values Nine Entertainment’s 60.1% stake at approximately A$1.4 billion (US$900 million). Nine, which has publicly backed the deal, said it will retain no interest in Domain post-transaction.

CoStar built a 16.9% stake in Domain through a share raid in February before submitting its original non-binding offer. The new deal is subject to shareholder approval later this year.

“This transaction reflects the growing strategic value of online property marketplaces globally,” Nine said in a statement. “We believe this proposal delivers a strong outcome for Nine shareholders.”

Domain’s share price climbed 5.2% to A$4.47 on the news, its biggest single-day gain in nearly a month. Shares in REA Group, Domain’s main rival and market leader, fell as much as 4.2%. REA is currently valued at A$33 billion, having more than doubled in value since 2020, while Domain’s market cap sat at A$2.69 billion prior to the revised offer.

CoStar, traditionally a commercial real estate data and analytics firm, has made aggressive moves into residential portals, acquiring Homes.com in the United States and British challenger OnTheMarket in recent years.

The Group published its first quarter financial results last week, recording its 56th consecutive quarter of revenue growth.