The Domain Holdings Australia Ltd (ASX: DHG) share price is pushing slightly higher on Tuesday after the announcement of an asset sale.
In afternoon trade the property listings company's shares are up 1% to $3.13.
What did Domain announce?
This morning the REA Group Limited (ASX: REA) rival announced that it has entered into an agreement for the sale of its customer relationship management (CRM) platform, MyDesktop.
MyDesktop is the market-leading real estate CRM helping agents to manage the 'front office' and workflow including relationship management, listings, marketing and sales.
Domain has agreed to sell the business to Real Estate CRM, which itself has agreed to be acquired by Real Estate Investar Group. The latter is anticipated to occur after the completion of the MyDesktop acquisition.
The total consideration for the MyDesktop acquisition is $14 million, of which 50% is contingent on achieving a number of conditions in 2021. Management anticipates the transaction completing later this month.
Domain Chief Executive Officer and Managing Director, Jason Pellegrino, explained that the sale was part of the company's strategy to simplify and optimise, and work in alignment with all agents.
He said: "Over the past decade, MyDesktop has played an integral role in building partnerships with agents and has helped Domain reach its goal of effective listing parity. As part of our strategy, we undertook a comprehensive review over a 12 month period and concluded that while MyDesktop is certainly a valuable product and has a bright future, Domain doesn't need to own a CRM to support our agent partners with the core needs we are best placed to meet."
"In our next phase of growth, we will partner with all agents and support the way they like to work – no matter which CRM they are using. On our journey from a listings portal to a customer-centric property marketplace, we are focused on increasing efficiency for agents through Homepass, Pricefinder and our suite of Real Time Agent products," he added.
Domain and Real Estate Investar Group have committed to working together to ensure continuity of service for both its customers.
