CoStar Group will acquire Australian property classifieds company Domain for $3 billion, marking its entry into the Australian market.

Target Information

CoStar Group, a leading US online real estate firm, is set to acquire Domain, an Australian property classifieds company, for an implied enterprise value of $3 billion. This acquisition marks CoStar's inaugural entry into the Australian market, where it will compete with established companies like REA Group. Under the terms of the deal, CoStar will purchase the remaining shares of Domain at A$4.43 each, reflecting a 4.2% premium over the stock's last closing price.

The transaction has received unanimous backing from Domain's board, which recommends that shareholders approve the move. Furthermore, Domain's majority owner, Nine Entertainment, supports the acquisition but plans to vote in favor only in the absence of a better offer.

Industry Overview in Australia

The Australian real estate market has seen significant evolution over the years, driven by technological advancements and changing consumer preferences. The growth of online property listings and comp