
CoStar Group Signs Binding Agreement to Acquire Australia’s Domain Holdings
CoStar Group, Inc. (NASDAQ: CSGP), a global leader in online real estate marketplaces, property information, analytics, and 3D digital twin technologies, has officially entered a binding Scheme Implementation Deed (SID) to acquire 100% of the issued capital of Domain Holdings Australia Limited. Domain is a premier Australian digital property marketplace, with a well-established portfolio of brands and a strong presence in the Australian real estate sector.
In a significant move earlier this year, CoStar Group acquired approximately 17% of Domain’s ordinary shares at A$4.20 per share, amounting to a total investment of around A$452 million (approximately USD $285 million). Following this initial investment and a period of exclusive due diligence, CoStar Group has agreed to a full acquisition, offering a cash consideration of A$4.43 per share to Domain shareholders. This consideration is subject to adjustment depending on any special dividends declared or paid by Domain from May 9, 2025. The acquisition will be carried out through a Scheme of Arrangement, a legal process under Australian law for takeover transactions.

The proposed acquisition values Domain at an implied enterprise value of A$3.0 billion, positioning this transaction as one of the most substantial investments in the Australian property technology sector. CoStar Group is expected to spend approximately A$2.3 billion (USD $1.5 billion) to acquire the remaining 83% of Domain shares that it does not already own. The move solidifies CoStar’s commitment to expanding its global footprint and demonstrates its confidence in Domain’s long-term value.
The implementation of the Scheme is contingent on several conditions. These include approval from Domain shareholders, court approval, clearance from the Australian Government’s Foreign Investment Review Board, and confirmation from an Independent Expert that the transaction is in the best interests of Domain shareholders. Additionally, there must be no material adverse changes or prescribed occurrences impacting Domain, as defined in the SID.
The Domain Board of Directors has unanimously endorsed the proposed transaction, recommending that shareholders vote in favor of the Scheme in the absence of a superior proposal. Their support is also conditional upon the Independent Expert continuing to maintain that the Scheme is in the best interests of Domain shareholders.
A crucial component of the approval process is the stance of Nine Entertainment Co. Holdings Limited, which owns a controlling 60.1% stake in Domain. Nine has expressed its intention to vote all of its shares in favor of the Scheme, subject to the same conditions set by the Domain Board and the Independent Expert’s conclusion. For the Scheme to proceed, it must be approved by more than 75% of the votes cast and a majority of the voting shareholders by number.
Andy Florance, Founder and Chief Executive Officer of CoStar Group, highlighted the strategic importance of the acquisition: “We’re pleased to have reached an agreement with Domain and to see Nine’s support of this transformative transaction. As one of the first and most experienced digital real estate companies in the world, CoStar Group brings a proven track record of building high-traffic online marketplaces that deliver real value. With our technology, scale, and innovation, we see a tremendous opportunity to enhance the Australian property market.”
Florance emphasized that the synergy between Domain’s local market expertise and CoStar’s global reach will lead to the creation of a more compelling and cost-effective user experience for real estate agents, property vendors, and home buyers. The integration is also expected to foster global knowledge-sharing, enabling CoStar to incorporate Domain’s best practices into its platforms operating in other international markets.
Domain Holdings Australia is recognized as a dominant player in the property technology space within Australia. Its leading brands include Domain, Allhomes, Commercial Real Estate, Domain Insight, and Pricefinder. Headquartered in Sydney, Domain boasts a significant digital footprint, reaching approximately 6.6 million Australians each month across its platforms. This user base positions Domain as one of the most influential voices in the Australian property market.
Nick Falloon, Chair and Non-Executive Director of Domain, expressed his endorsement of the transaction, stating, “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. This proposal reinforces the strong fundamentals of Domain, which we are confident will be further realized with CoStar Group’s support.”
The next major milestone in the acquisition process is the Scheme meeting, anticipated to take place in mid-August 2025. At this meeting, Domain shareholders will have the opportunity to vote on the proposed transaction. If approved and subject to all remaining conditions being satisfied, the Scheme is expected to be implemented in the third quarter of 2025.
This acquisition marks another milestone in CoStar Group’s global expansion strategy. Since its founding in 1986, CoStar has continuously evolved to become a global powerhouse in the commercial and residential real estate sectors. With a strong emphasis on digitizing the real estate landscape, CoStar empowers users by providing access to comprehensive property data, insights, and state-of-the-art technological tools.
CoStar Group’s extensive brand portfolio includes some of the most recognized names in the industry. These include:
- CoStar: A global leader in commercial real estate data, analytics, and news.
- LoopNet: The most visited commercial real estate marketplace.
- Apartments.com: The dominant platform for apartment rentals.
- Homes.com: The fastest-growing residential real estate marketplace in the United States.
- Matterport: A spatial data company known for its digital twin technology, enabling virtual property tours and comprehensive space analysis.
- STR: A trusted source for hospitality data and performance benchmarking.
- Ten-X: A digital auction platform for commercial real estate transactions.
- OnTheMarket: A significant residential property portal in the UK.
As of the first quarter of 2025, CoStar Group’s network of websites drew more than 130 million average monthly unique visitors, a testament to the company’s growing influence and popularity in the real estate space. Headquartered in Arlington, Virginia, CoStar continues to lead the digital transformation of the global property industry by leveraging technology, scale, and unparalleled market intelligence.
By acquiring Domain Holdings Australia, CoStar not only cements its position in the Australian market but also signals its broader ambition to redefine how property marketplaces function globally. The partnership is expected to generate meaningful synergies, drive innovation, and foster increased competition in the Australian property market, benefiting consumers and professionals alike.
CoStar’s acquisition of Domain is emblematic of a larger trend in the global real estate landscape, where digital platforms, data analytics, and user experience are becoming key differentiators. With this strategic move, CoStar aims to set new standards for efficiency, transparency, and value creation in real estate transactions.
Looking ahead, the real estate industry in Australia stands to gain from the introduction of CoStar’s advanced technology and business methodologies. The combined entity is poised to enhance property search capabilities, improve listing exposure, and enable data-driven decision-making for all stakeholders.
As the regulatory process continues and shareholders prepare to vote, industry analysts will be closely watching how the merger unfolds and what it may mean for competitors in both the Australian and broader Asia-Pacific property markets. With support from key stakeholders already in place and a clear roadmap laid out, the CoStar-Domain transaction is on track to reshape the future of property marketplaces in the region.