Domain Launches A$180M Capital Raise to Fund Realbase Acquisition — Update

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By Stuart Condie
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SYDNEY–Domain Holdings Australia Ltd. will acquire real-estate campaign management platform Realbase Pty. Ltd. for up to 230 million Australian dollars (US$172.2 million), funding the initial outlay with a A$180 million capital raising.

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Domain on Friday said it would pay an up-front A$180 million in cash for the largest such tech provider in Australia and New Zealand, with another A$50 million to follow depending on the unit hitting financial targets.

It will fund the acquisition through a fully underwritten accelerated non-renounceable entitlement offer of new shares, available on a 1-for-12.33 basis to existing eligible shareholders. Domain said Nine Entertainment Co. Holdings Ltd., which owns 59% of its stock, had committed to take up its full entitlement.

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Domain said the acquisition would advance its marketplace strategy and increase its agent-solutions coverage to about 50% of all Australian property transactions, from 35% currently. It also more than doubles agent-solutions revenue on a pro-forma basis.

“Each of Realbase’s solutions complements and extends the value proposition Domain can take to agents,” Domain Chief Executive Jason Pellegrino said.

“The acquisition of Realbase meaningfully increases the scale and impact of Domain’s Agent Solutions unit and strengthens our position as the leading provider of end-to-end agent workflow solutions.”

Domain sees A$18 million in annual earnings synergies by the 2026 fiscal year. Full achievement of the A$50 million earn-out payments hinges on an approximately fivefold increase in Realbase’s earnings by FY 2026, compared with FY 2022.

The entitlement offer is priced at A$3.80 per share. Domain’s shares last traded at A$4.01 before they were placed in a trading halt ahead of Friday’s market open.

Write to Stuart Condie at [email protected]

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Credit: www.marketwatch.com /

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