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ARLINGTON, Va. - CoStar Group, Inc. (NASDAQ: CSGP), a prominent provider of online real estate marketplaces and analytics with a market capitalization of $32 billion and annual revenue of $2.8 billion, has announced a definitive agreement to acquire Domain Holdings Australia Limited. The transaction is set to consolidate CoStar’s position in the Australian property marketplace. According to InvestingPro data, CoStar has demonstrated strong revenue growth of 11.28% over the last twelve months, maintaining its position as a prominent player in the Real Estate Management & Development industry.
In a move that expands CoStar Group’s international footprint, the company has agreed to acquire the remaining shares of Domain Holdings Australia for A$4.43 per share, valuing the enterprise at A$3.0 billion. This follows CoStar’s initial purchase of approximately 17% of Domain’s ordinary shares in February 2025. InvestingPro analysis shows CoStar maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 6.01, indicating robust capability to execute such strategic acquisitions.
The Domain Board has unanimously recommended that shareholders accept the offer, which is contingent on several conditions, including the approval of Domain shareholders, Australian court and regulatory approvals, and the absence of any material adverse changes to Domain’s business.
The Scheme of Arrangement, if approved, will see CoStar Group spend around A$2.3 billion ($1.5 billion) to acquire the outstanding 83% stake in Domain. Nine Entertainment Co. Holdings Limited, holding a controlling 60.1% share of Domain, has indicated its intention to vote in favor of the Scheme, subject to the same conditions.
Andy Florance, CEO of CoStar Group, expressed confidence in the acquisition, stating it will drive greater value for agents, vendors, and home buyers, and enhance the Australian property market with CoStar’s technology and scale.
Domain, with its headquarters in Sydney, boasts a large portfolio of property brands and reaches an average of 6.6 million Australians monthly. Domain’s Chair, Nick Falloon, has endorsed the proposal as compelling value for shareholders and a testament to Domain’s strong fundamentals.
The Scheme meeting is scheduled for mid-August 2025, with the potential completion of the transaction expected in the third quarter of 2025, subject to the fulfillment of the Scheme’s conditions and court approval.
This information is based on a press release statement.
In other recent news, CoStar Group reported its first-quarter 2025 results, revealing a 12% year-over-year revenue increase to $732 million, although earnings per share fell short of expectations with a loss of $0.04 compared to the forecasted $0.12. The company’s adjusted EBITDA surged by 429% from the previous year, demonstrating strong operational efficiency. Analysts from Needham raised CoStar’s price target to $98, maintaining a Buy rating, following the company’s better-than-expected earnings bolstered by the acquisition of Matterport. Meanwhile, Citizens JMP reaffirmed its Market Outperform rating with a steady price target of $85, noting that CoStar’s core businesses like CoStar Suite and Apartments.com continue to perform robustly. CoStar’s guidance for fiscal year 2025 anticipates growth and improved margins, although the commercial real estate market remains challenging. The company’s strategic focus includes expanding its portfolio through mergers and acquisitions, with a potential acquisition of Domain on the horizon. CoStar’s recruitment and sales force expansion are pivotal for driving revenue growth, particularly in its primary segments.
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