REA Group Limited (ASX:REA) has announced that realestate.com.au Pty Ltd has entered into an agreement to acquire 100% of Hometrack Australia Pty Ltd (“Hometrack Australia”) subject to ACCC approval.
Hometrack Australia is a residential property data company and subsidiary of Hometrack Data Systems, which is owned by UK listed ZPG Plc (LSE:ZPG).
Hometrack Australia is a provider of property data services to the financial sector. Its suite of products includes property data analytics and insights, customised data platforms and an Automated Valuation Model (AVM).
The purchase consideration of $130m will be funded from existing cash reserves and debt of $70m.
The Hometrack Australia management team will continue to be led by CEO Brendan Darcy and will operate under its current structure and brand.
Hometrack Australia is forecast to deliver revenue between $13m to $15m and EBITDA between $6m to $7m for their financial year ended 30 September 2018. There would also be cost synergies realised in the REA business once the Hometrack business is fully integrated into REA’s platforms.
REA Group CEO Tracey Fellows commented: “It’s an exciting move for our business and a natural extension for realestate.com.au. The acquisition allows us to deliver more property data and insights to our customers and consumers.”
Hometrack Australia CEO Brendan Darcy commented: “REA is a natural fit for Hometrack in Australia. We are very excited to be joining REA, a company with a shared vision for excellence in data and insights.”
