REA Group is set to acquire 100 per cent of residential property data company Hometrack Australia, allowing it to expand its property insights and data capability.
The publisher of realestate.com.au has entered into an agreement with Hometrack Australia, subject to approval by the ACCC.
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, which focuses on providing users with relevant property information and valuation estimates.
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ZPG operates the UK site Zoopla which provides a range of software services for agents and developers.
The purchase consideration of $130 million will be funded from existing cash reserves and debt of $70 million.
The Hometrack Australia management team will continue to be led by chief executive Brendan Darcy and will operate under its current structure and brand.
Hometrack Australia is forecast to deliver revenue between $13 million to $15 million and EBITDA between $6 million to $7 million for their financial year ended 30 September 2018. REA said there would also be cost synergies realised in the REA business once the Hometrack business is fully integrated into REA’s platforms.
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“It’s an exciting move for our business and a natural extension for realestate.com.au,” REA Group chief executive Tracey Fellows said.
“The acquisition allows us to deliver more property data and insights to our customers and consumers.”
Hometrack Australia chief executive Brendan Darcy said: “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.”