The Domain Holdings Australia Ltd (ASX: DHG) share price could be on the move on Monday after the property listings company announced a new acquisition.
What did Domain announce?
This morning Domain announced that it has entered into a binding agreement to acquire Real Time Agent operator Bidtracker Holdings.
Real Time Agent is an Australian point of sale platform that digitises key steps in the property journey. Its product suite includes Real Time Authority, Bidtracker, and Real Time Contracts.
Real Time Authority provides the digital execution of the binding agreement between real estate agents and vendors.
Bidtracker is a tool for agents to digitally record individual bids and auction results, in real time. This provides agencies and franchises with real time visibility of their business and performance.
Real Time Contracts is a digital sale contract process that calculates settlement dates and deposits. It instantly sends copies of the completed contract to the agent, office, vendor, and purchaser.
What are the terms of the deal?
According to the release, the on-target consideration for the proposed transaction is $24.8 million.
Approximately $19.4 million of this is payable in cash on completion, with an additional amount of up to $15.6 million payable based on the achievement of defined targets over FY 2020 and FY 2021. This results in a maximum consideration of $35 million on achievement of 200% of the business plan.
Domain’s chief executive officer and managing director, Jason Pellegrino, was very pleased with the transaction.
He said: “We’re thrilled to welcome Real Time Agent to the Domain Group. Real Time Agent’s products deliver huge benefits to both agents and consumers, and accelerate our existing strategy of delivering technology that streamlines the online and offline property process.”
“The Real Time Agent products save agents significant admin time – up to four hours per transaction – and reduce back-office costs and paperwork, as well as improving accuracy and compliance.”
“The power of these tools has allowed Real Time Agent to grow to service more than 4,000 agent customers, achieve a 98% customer retention rate and process over $40bn in property transactions on the platform, in only three years. Bidtracker alone offers unique real-time insights on live auction activity and property demand. This currently covers 60 percent of Victoria’s weekly auctions,” he concluded.
Domain is aiming to complete the transaction before the end of the calendar year.
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