This article is from the Australian Property Journal archive
REAL estate listings group Domain is acquiring Insight Data Solutions for $60 million, extending the digital property platform’s reach into land and property valuation, insights and analytics services in the government sector.
The acquisition is part of its “journey to expand its addressable market beyond agents and consumers to financial institutions, and government,” the Nine Entertainment Co-owned company said.
“IDS brings rich experience in building property data platforms and delivery services to support the workflow requirements of governments, particularly in regards to land valuations,” Domain CEO Jason Pellegrino said.
“Federal, state and local governments will always play a central role in Australia’s property ecosystem. IDS’ platforms, workflow tools and property analytics allow governments to make more timely, accurate and nuanced decisions regarding land valuations, land use, tax policy and revenues.
“The importance of these services is likely to amplify as governments deal with increasing land scarcity, the challenges of housing affordability and planning policy, increased infrastructure investment and the transition of revenue from transfer duties to annual levies based on land valuation”.
IDS is anticipated to deliver on-target FY22 revenue of $7 million before the impact of any operating synergies.
Over the next five years, on-target performance would see IDS executing on identified growth opportunities to deliver a greater than four-fold increase in total revenue in FY26.
Domain last month revealed a 10.7% increase in full-year revenue to $289.6 million, and a 66% increase in net profit after tax to $34.3 million.
Established in 2013, IDS’s platform and workflow tools connect the office of the Valuer General, who is responsible for statutory valuation processes; Local Government Authorities which levy rates based on these valuations; valuers who perform the statutory valuations; and the public whose rates are based on the statutory valuations.
In the government segment, IDS operates is the leading private statutory valuation workflow platform of scale in Australia, managing 28% of national statutory valuation volume, with prominence in Victoria and the City of Adelaide.
The vast majority of remaining valuation volumes are managed in-house by State VGs and LGAs.
In the corporate sector, IDS’s valuation models are in use by smaller lenders, fintechs and mortgage brokers.
IDS founders, Louie Psaroulis, Mike Thanos and Chris Spanos will remain with the business.
