Domain’s $3 Billion Deal with CoStar Set to Reshape Australia’s ASX300 Property Landscape

2 min read | May 09, 2025 02:28 PM AEST | By Team Kalkine Media

Google News:

Domain’s $3 Billion Deal with CoStar Set to Reshape Australia’s ASX300 Property Landscape — Image source: Shutterstock

Recent News

Could Housing Concerns Change The JB Hi-Fi Story?

Megaport’s Equity Raise: Growth Accelerator or Dilution Concern?

Is Life360’s Growth Story Entering A New Phase?

How Does a Mining Portfolio Stay Balanced Across Cycles?

Make Kalkine Media
My Trusted Source

Highlights

Domain agrees to $3 billion acquisition deal with US-based CoStar

Nine Entertainment plans special dividend post-transaction

Deal highlights value for investors across ASX300 and ASX dividend stocks

Domain Holdings Australia (ASX:DHG), a prominent player in the Australian real estate listings market, has entered into a binding agreement to be acquired by its long-standing US-based partner CoStar Group for approximately $3 billion. The transaction marks one of the most significant developments in the ASX300 real estate sector in recent years and is expected to be completed in the third quarter of 2025.

Under the terms of the agreement, CoStar — which already owns a 16.9% stake in Domain — will pay $4.43 in cash per share. This offer is subject to adjustment for any special dividend declared by Domain prior to the completion. The board of Domain has unanimously recommended the proposal in the absence of a superior offer, and the company’s largest shareholder, Nine Entertainment (ASX:NEC), has also expressed its intention to support the deal.

Nine, which owns a controlling interest in Domain, has welcomed the transaction as a strategic move aligned with long-term shareholder value. The company plans to distribute a portion of the proceeds to its shareholders through a fully-franked special dividend, estimated to be between $0.47 and $0.49 per share. This is in addition to any final dividend Nine may announce for FY2025. Investors focused on ASX dividend stocks may find this development particularly notable.

CoStar’s CEO Andy Florance commented on the potential for technology and innovation to transform Australia’s digital property marketplace. With a proven track record in the United States and other international markets, CoStar’s expansion through this acquisition may add fresh momentum to Australia’s evolving real estate tech sector.

Following the deal’s completion, Nine is projected to receive around $1.4 billion in net cash, strengthening its balance sheet and positioning it for further capital initiatives. The valuation outcome also reflects Nine’s view of Domain's strategic worth within the digital property listings space.

This acquisition underscores the growing influence of international players in the ASX300 and highlights evolving opportunities in the real estate and digital tech segments. Investors tracking the ASX300 index will be watching closely as the deal progresses through regulatory and shareholder approvals in the coming months.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.