REA Group’s acquisition of residential property data company Hometrack Australia will not face intervention from the Australian Competition and Consumer Commission, paving the way for the $130 million purchase to be completed in the coming days.
ASX-listed REA, majority owned by News Corp, said in a note to the exchange the acquisition will allow its realestate.com.au platform to deliver more property data and insights to consumers and customers.
REA announced the 100 per cent purchase of the property analytics company to the market on May 1.
The $130 million purchase consideration is being funded from existing cash reserves and debt.
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Hometrack Australia is a provider of property data services to the financial sector. Its products include property data analytics and insights, customised data platforms and an automated valuation model.
Hometrack Australia is a subsidiary of Hometrack Data Systems, which is owned by UK-listed ZPG Plc.
REA recently posted a 20 per cent lift in revenue and boosted its earnings by 21 per cent driven by the strength of the company’s residential and commercial businesses and the inclusion of the financial services business.
It recorded revenue of $592 million, and earnings before interest, tax, depreciation and amortisation of $345 million for the nine months ending 31 March.
“The recent acquisition of Hometrack Australia is a natural extension for our Australian business,” REA Group chief executive Tracey Fellowes said in May after the results announcement.
“It means we will be able to provide our customers and consumers access to more property data with more accuracy than ever before.”
REA Group shares were down Wednesday by 2.95 per cent to $88.23 at 2.50pm AEST.