Domain to Sell IDS Government Services to LSSA

Domain, part of CoStar Group, has agreed to sell IDS Government Services, which operates the VM Online statutory valuation platform, to Land Services SA (LSSA).

LSSA will acquire the industry-leading VM Online platform that supports state and local government statutory valuations. The transaction is subject to customary conditions, including FIRB approval, and is expected to complete in the coming months.

However, Domain will retain the Automated Valuation Model (AVM) and related property data capabilities, which were part of its 2021 acquisition of IDS.

Jason Pellegrino, President at Domain, said:

"We’re pleased to have found the right buyer for IDS Government Services, one that recognises the strength of VM Online and is best placed to take it forward. We look forward to working closely with Land Services SA to ensure a smooth transition for clients and employees.”

The sale of IDS is another indicator of a cleaner, more focused Domain since CoStar entered the building. Under Nine Media's ownership, Domain made a string of ill-fated acquisitions and strategic investments that—if anything—widened the gap between the challenger portal and the market leader, realestate.com.au, as Domain sought to win on multiple fronts.

Generating some cash and retaining a useful AVM sounds like a good deal for Domain as it continues its recovery under CoStar's management.