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After months of negotiations, the US-based CoStar Group is set to acquire Domain in a transaction that values the Australian property company at $3 billion.
The move follows CoStar Group’s acquisition of 16.9 per cent of Domain’s stake earlier this year, and subsequent negotiations between the US company and Nine Entertainment Co on the sale of its property platform.
On 9 May 2025, CoStar announced that it had entered a binding Scheme Implementation Deed (SID) to pay Domain shareholders $4.43 per share, excluding any special dividends, to buy the remaining 83 per cent of Domain shares.
The consideration that has been offered to Domain’s shareholders values the company at $3 billion, meaning that it would cost CoStar approximately $2.3 billion to acquire Domain’s remaining shares.
Founder and CEO of CoStar Group, Andy Florance, said that the company was pleased to have reached an agreement with Domain, and added he was confident that the acquisition would “foster more competition in Australia”.
“With our technology, scale, and the innovation we’re known for, we see a tremendous opportunity to enhance the Australian property market,” Florance said.
Nine Entertainment Co, which currently holds 60.1 per cent stake in Domain, said in an ASX statement that it intends to vote in favour of CoStar’s acquisition scheme.
The board of Nine Entertainment said that its comprehensive review process had determined that the proposed transaction “appropriately reflects the strategic value of Nine’s interest in Domain”.
“As the controlling shareholder of Domain and with a focus on the best interests of Nine shareholders, Nine supports Domain’s decision to enter into the scheme deed,” Nine’s board said.
A scheme meeting, where Domain shareholders will vote on the proposal, is expected to be held in mid-August 2025.
The vote will require the approval of 75 per cent of eligible shareholders and a majority of shareholders voting by number.
The scheme of purchase will also need to satisfy other conditions, such as obtaining court approvals, authorisation from the Foreign Investment Review Board (FIRB), and an assessment from an independent expert that the scheme is in the best interest of Domain’s shareholders.
Domain chair and non-executive director, Nick Falloon, said that the proposal presented significant opportunities for Domain’s shareholders that the board was “confident will be further realised with CoStar Group’s support”.
“The Domain board has carefully considered the CoStar Group proposal and believes it represents compelling value and a high degree of certainty for Domain shareholders, through the cash offer and limited conditionality,” Falloon said.
Ahead of the upcoming scheme meeting, the Domain board said that it unanimously recommends that its shareholders vote in favour of the proposed scheme, in the event that the independent expert concludes it is in shareholders’ best interest, and no superior proposal emerges.
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