The digital advertising company and owner of realestate.com.au has entered into an agreement to acquire Hometrack Australia to boost its property data analytics capability.
REA Group has announced its plans to acquire 100 per cent of residential property data analytics company Hometrack Australia for $130 million (£71 million) in cash, subject to approval by the Australian Competition and Consumer Commission (ACCC).
The acquisition will be financed from existing cash reserves and debt of $70 million.
Hometrack Australia offers property data analytics and insights, customised data platforms, and an automated valuation model. It is a subsidiary of Hometrack Data Systems, which is owned by London Stock Exchange-listed ZPG.
The parent company, which focuses on the provision of property information (including valuation estimates), also owns financial comparison site money.co.uk and Zoopla, a UK-based marketplace for consumers to search for property and for real estate agents and builders to advertise.
“ZPG acquired Hometrack Australia as part of our acquisition of the wider Hometrack business in the UK last year and we have always been clear that our core markets are the UK and Europe,” Alex Chesterman, founder and CEO of ZPG, said.
“We believe that REA Group, as a local operator, would be a more natural owner of the Hometrack Australia business.”
Hometrack Australia’s management team will continue to be led by current CEO Brendan Darcy and will operate under its existing structure and brand.
Hometrack Australia’s CEO said REA is “a natural fit” for the company, while REA CEO Tracey Fellows described the acquisition as a “natural extension for realestate.com.au”.
REA said there would be “cost synergies realised in the REA business” once Hometrack Australia’s offerings are fully integrated into its platforms, which also include realcommercial.com.au.
The property analytics company is forecast to deliver $13 million to $15 million in revenue and $6 million to $7 million in earnings before interest, taxes, depreciation, and amortisation for the financial year ending 30 September 2018.
[Related: New cash rate record reached]
Tas Bindi is the features editor for The Adviser magazine.
Prior to joining Momentum Media, Tas wrote for business and technology titles such as ZDNet, TechRepublic, Startup Daily, and Dynamic Business.
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