Domain's $3B CoStar Deal Shakes Up ASX200 Real Estate Sector

May 08, 2025 07:15 PM PDT | By Team Kalkine Media

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Domain's $3B CoStar Deal Shakes Up ASX200 Real Estate Sector — Image source: shutterstock

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Highlights

Domain seals $3 billion acquisition deal with CoStar

Nine Entertainment supports the takeover proposal

Deal expected to close by Q3 2025, pending approvals

A major move is underway in Australia’s digital real estate sector as Domain Holdings (ASX:DHG) has entered into a binding agreement to be acquired by U.S.-based CoStar Group (NASDAQ:CSGP) for an implied enterprise value of $3 billion. This development is set to influence the landscape of property platforms on the ASX200 and beyond.

Under the agreement, CoStar will acquire 100% of Domain’s shares at $4.43 per share. Domain’s largest shareholder, Nine Entertainment (ASX:NEC), which holds a 60% stake, has indicated support for the deal, contingent on no superior proposal being presented and a favourable assessment by an independent expert.

The Domain board has recommended shareholders vote in favour of the deal, highlighting both the value and strategic alignment the acquisition presents. The proposal includes the possibility of a fully franked special dividend of up to $0.10 per share, offering eligible shareholders franking credits of up to $0.04 per share—an element that may appeal to those who focus on income-generating ASX dividend stocks.

CoStar’s founder and CEO, Andy Florance, expressed enthusiasm about expanding into the Australian market, praising Domain’s local expertise and signalling intentions to enhance the platform’s performance with global technology and innovation. “With our scale and technology, we see tremendous potential to improve the experience for agents, sellers, and home buyers,” Florance said.

Domain’s chair, Nick Falloon, echoed these sentiments, calling the agreement a strong endorsement of the company’s fundamentals and growth outlook. The collaboration is expected to create synergies that enhance competitiveness in the digital real estate space both locally and internationally.

This transaction stands out as one of the more significant deals within the ASX300 index recently.

Pending shareholder and regulatory approvals, the acquisition is anticipated to be completed by the third quarter of 2025.

As global and local players continue to reshape Australia’s digital property market, developments like this underscore the dynamic evolution taking place within ASX200-listed firms and how strategic international interest can catalyse new growth chapters.

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