Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

REA Group to acquire property analytics company for $130m

mortgagehouse mortgagehouse
Staff Reporter 3 minute read

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.

Advertisement
Advertisement

“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]

REA Group to acquire property analytics company for $130m
mortgagehouse
TheAdviser logo
mortgagehouse
Tas Bindi

Tas Bindi

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. 

You can email Tas on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

FROM THE WEB
more from the adviser
Sean Hughes ta We’re not to blame for slower processing times: ASIC

There is no evidence to suggest that ASIC’s responsible lending...

millenial home buyers ta First home buyer activity spikes ahead of deposit scheme

Data released by Aussie Home Loans has revealed an increase in bo...

Liberty Financial ta Brokers help bolster Liberty’s bottom line

The non-bank has released its results for the 2019 financial year...