Australian property listings platform Domain is set to be acquired by U.S. real estate heavyweight CoStar Group in a landmark deal valuing the company at approximately $3 billion AUD.
The proposed transaction comes just months after CoStar acquired a 16.9% stake in Domain and follows weeks of due diligence.
Under the terms of the Scheme Implementation Deed (SID) announced today, CoStar will acquire all remaining shares in Domain at $4.43 per share, subject to customary regulatory and shareholder approvals.
Domain’s majority owner, Nine Entertainment Co., which holds a 60.1% stake, has announced its intention to vote in favour of the scheme.
“As the controlling shareholder of Domain and with a focus on the best interests of Nine shareholders, Nine supports Domain’s decision to enter into the Scheme Deed,” said Nine’s Board in an ASX statement.
If approved, Nine will receive around $1.4 billion AUD for its holding. Domain shareholders may also receive a fully franked special dividend of up to $0.10 per share, depending on available franking credits.
Any such dividend would reduce the final cash consideration by the same amount (excluding the franking value).
The offer represents a significant premium for Domain investors:
- 42% above Domain’s undisturbed share price of $3.12,
- 50.2% above the one-month volume-weighted average price (VWAP), and
- 59.7% above the three-month VWAP prior to CoStar’s initial indicative proposal in February.
Domain Chair Nick Falloon said the board’s support reflects the “compelling value” of the offer and the strategic opportunity it presents.
“This proposal is an endorsement of the strong fundamentals of Domain, and we are confident this position will be further strengthened with CoStar’s support,” Mr Falloon said.
The deal is expected to be completed in the third quarter of 2025, subject to shareholder and court approvals, Foreign Investment Review Board (FIRB) clearance, and the Independent Expert concluding that the scheme is in the best interest of Domain shareholders.
The Domain Board has unanimously recommended that shareholders vote in favour of the scheme, assuming no superior proposal emerges.