- Comes as DHG expands into two new markets
- Depending on IDS performance, total consideration can reach $159M
- IDS is expected to deliver on-target FY22 revenue of $7M
Domain Holdings Australia (ASX: DHG) has announced that it has entered into a binding agreement to acquire Insight Data Solutions (IDS).
The agreement sees Domain acquiring 100% of the securities in Insight Data Solutions, with completion expected to occur in mid-October of this year and consideration payable at completion is $60 million in cash.
Additional contingent consideration is payable in tranches over the performance period between completion and June 2027.
Payment of each tranche of contingent consideration is triggered by the achievement of commercial and financial outcomes of the IDS business relating to securing and delivering services under new customer contracts.
The total consideration (including the completion payment) for on-target performance over the performance period by IDS is $140m and the maximum consideration payable in the event of overperformance by IDS is $159m.
IDS is anticipated to deliver on-target FY22 revenue of $7m before the impact of any operating synergies.
The move comes as Domain looks towards expanding beyond agents and consumers into financial institutions and government.
“We are pleased to welcome IDS to the Domain Group. IDS brings rich experience in building property data platforms and delivery services to support the workflow requirements of Governments, particularly in regards to land valuations,” said Jason Pellegrino, Domain CEO.
“Federal, State and Local Governments will always play a central role in Australia’s property ecosystem. IDS’ platforms, workflow tools and property analytics allow Governments to make more timely, accurate and nuanced decisions regarding land valuations, land use, tax policy and revenues.”
In August, the company FY21 results reported statutory revenue of $294.2 million, and a net profit after tax of $34.3 million including a significant loss of $3.6 million; net profit was 66% up year on year.