This article is from the Australian Property Journal archive
ASX-listed property portal and news publisher Domain is acquiring real estate campaign management technology platform Realbase for $180 million.
That figure could stretch out to $230 million, including a contingent consideration of up to $50 million that may be payable for achievement of stretch financial performance targets. Achievement of maximum earn out payments would result in a fivefold increase in Realbase’s EBITDA by FY26.
Realbase, which operates brands Campaigntrack and Realhub, is the largest real estate campaign management technology platform in Australia and New Zealand, providing services to agents on around 40% of all property transactions. Its platforms allow real estate agents to construct, price, order and track the campaign marketing products required to list and market a property, on-market or off-market. This includes managing the marketing schedule on a property listing, including real estate portal listings, visual content, signboards, brochures, flyers and social and print media advertising.
Domain anticipates Realbase will generate $22 million revenue and $9 million EBITDA in FY22.
Domain’s market coverage of Australian property transactions will increase from circa 35% to 50%.
“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,” Domain CEO, Jason Pellegrino said.
“Each of Realbase’s solutions complements and extends the value proposition Domain can take to agents. The acquisition of Realbase meaningfully increases the scale and impact of Domain’s agent solutions unit and strengthens our position as the leading provider of end-to-end agent workflow solutions.”
The acquisition will be funded by a $180 million fully underwritten 1 for 12.33 pro rata accelerated non-renounceable entitlement offer, offered at $3.80 per share.
Domain’s largest shareholder, Nine, will back the move and take up its full entitlement, representing 59% of the equity raising. It will also sub-undewrite the institutional and retail tranches, which would increase its shareholding to up to 62%.
Domain is making the acquisition through one of its wholly-owned subsidiaries.
Realbase’s management team will stay on to run the business.
