Domain has acquired Insights Data Solutions (IDS) for up to $159 million to advance its marketplace strategy.
The real estate portal operator purchased IDS, an Australian property valuation solution business, to extend its reach beyond agents and consumers into the finance and government sectors.
IDS specialises in government and corporate real estate.
Domain plans to make use of the company’s specialist capabilities in land and property valuation, insights and analytics services.
The deal is expected to be finalised in mid-October later this year for a $60 million cash payment with additional contingent payments after this date through to June 2027.
Provided IDS achieves predicted revenue over the few years, the total sale price could reach between $140 million and $159 million.
Domain CEO Jason Pellegrino said IDS will bring “rich experience in building property data platforms” to expand the company's reach.
“Federal, state and local governments will always play a central role in Australia’s property ecosystem," Pellegrino said.
“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.
“The importance of these services is likely to amplify as governments deal with increasing land scarcity, the challenges of housing affordability and planning policy, increased infrastructure investment and the transition of revenue from transfer duties to annual levies based on land valuation.”
IDS currently manages 28 percent of national statutory valuations, holding top positions in Victoria and Adelaide.
It also has an automated valuation model product suite currently used by smaller lenders, fintechs and mortgage brokers.
Pellegrino said IDS is “a great addition to our property data solutions pillar” and that Domain will continue to “support IDS to keep innovating and expanding into new markets and geographies”.
IDS founders, Louie Psaroulis, Mike Thanos and Chris Spanos are set to continuing working within the business and driving the IDS strategy.