Australian portal company Domain has today announced that it has agreed to acquire data services provider Insight Data Solutions (IDS).
Founded in 2013, IDS is a leading real estate data business focused on the corporate and government markets. In a press release Domain stated that with the purchase of IDS it is looking to expand its total addressable market beyond agents and consumers to financial institutions and governments.
In the government segment IDS' valuation tool manages 28% of national statutory valuation volume, with leading positions in Victoria and the City of Adelaide. While in the financial sector IDS has a bank-grade automated valuation model product suite and its valuation models are in use by smaller lenders, fintechs and mortgage brokers.
Domain CEO Jason Pellegrino said of the deal:
“We are pleased to welcome IDS to the Domain Group. IDS brings rich experience in building property data platforms and delivery services to support the workflow requirements of Governments, particularly in regards to land valuations"
“IDS is a strong standalone business and a great addition to our Property Data Solutions pillar. Through the acquisition we can support IDS to keep innovating and expanding into new markets and geographies”.
Completion of the deal is expected by mid-October with Domain paying an initial consideration of A$60 million with the final price paid to be between A$140-159 million depending on performance.
The founders of IDS will stay on at the company with revenues for FY22 expected to meet the A$7 million target. Expectations for the company's future performance are sanguine with a greater than four-fold increase in revenue predicted by FY26.
With the purchase of IDS, Domain is looking to diverge from the path taken by its rival REA Group which has been leaning heavily into mortgages with the recent acquisition of brokerage firm Mortgage Choice and investment in mortgage software firm Simpology.