- Domain Holdings Australian (DHG) acquires Realbase, the largest real estate campaign management technology platform in Australia and New Zealand, for a maximum consideration of $230 million
- Under the terms of the signed agreement, Domain will give an upfront cash consideration of $180 million which will be funded by an institutional entitlement offer
- The acquisition marks a significant step forward in the evolution of Domain’s Marketplace strategy with Domain calling it “highly strategic”
- The trading halt is expected to lift on April 4 following the results of the institutional entitlement offer
- DHG shares last traded at $4.01 prior to the trading halt
Domain Holdings Australian (DHG) has acquired Realbase, the largest real estate campaign management technology platform in Australia and New Zealand, for a maximum consideration of $230 million.
Under the terms of the signed agreement, Domain will give an upfront cash consideration of $180 million which will be funded by an institutional entitlement offer.
The company will also pay a contingent consideration of up to $50 million which may be payable for achievement of stretch financial performance targets, or a mix of revenue and earnings before interest, taxes, debt and amortisation (EBITDA) metrics over a three-year period from FY24 to FY26.
The upfront $180 million consideration will be fully funded by a fully underwritten 1 for 12.33 pro rata accelerated non-renounceable entitlement offer to raise the total capital needed to acquire Realbase.
The entitlement offer is set to issue around 47.4 million new shares at an offer price of $3.80, representing a 5.2 per cent discount to the last closing price on March 31.
The institutional entitlement offer will close today with results announced on April 4, with settlement expected on April 11 and allotment on April 22.
Eligible retail shareholders will be invited to participate in the retail component of the entitlement offer at the same issue price and offer ratio as under the institutional entitlement offer.
The retail entitlement offer is set to open April 8 and close on April 28.
The acquisition marked a significant step forward in the evolution of Domain’s Marketplace strategy with Domain calling it “highly strategic”.
“Each of Realbase’s solutions complements and extends the value proposition Domain can take to agents,” said Domain CEO Jason Pellegrino.
“For some time we have been impressed by Realbase’s technological capabilities and products including innovative campaign management, high growth digital proposals and a rapidly expanding social media marketing offer.
The company’s acquisition is expected to generate significant upsell and cross-sell opportunities through providing a broader platform and deeper service offering that is embedded in the agent workflow.
The trading halt is expected to lift on April 4 following the results of the institutional entitlement offer.
DHG shares last traded at $4.01 prior to the trading halt.