Domain (ASX: DHG) has announced it’s going to make a technology acquisition.
Domain is the business behind one of Australia’s largest property portals, Domain.com.au, which allows property sellers to try to advertise to as many potential buyers as possible. Some of the other real estate websites it operates includes Allhomes.com.au and Commercialrealestate.com.au.
Domain’s New Acquisition
Domain announced this morning that it has entered into a binding agreement to acquire Bidtracker holdings, which is the company that operates ‘Real Time Agent’.
The upfront payment in cash is $19.4 million upon completion. The ‘on-target’ price is $24.8 million. If it achieves defined targets over FY20 and FY21 it will result in a total of $35 million paid for the acquisition, which would require a 200% achievement of the business plan.
What Is Real Time Agent?
It’s an Australian point of sale platform that digitises key steps in the property process including agency agreements, auctions and contracts.
‘Real Time Authority’ is a digital execution of the binding agreement between the real estate agents and vendors.
‘Bidtracker’ is a tool for agents to digitally record individual bids and auction results, in real time, providing agencies and franchises with real time visibility of their business and performance.
‘Real Time Contracts’ is a digital sale contract process that calculates settlement dates and deposits and instantly sends copies of the completed contract to the agent, office, vendor and purchaser. One useful bonus is that it works offline.
It has more than 4,000 agent customers with a 98% customer retention rate.
Domain Management Comments
Domain CEO and Managing Director Jason Pellegrino said: “We’re thrilled to welcome Real Time to the Domain Group. Real Time Agent’s products deliver huge benefits to both agents and consumers, and accelerate our existing strategy of delivering technology that streamlines the online and offline property process.
“The Real Time Agent products save agents significant admin time – up to four hours per transactions – and reduce back-office costs and paperwork, as well as improving accuracy and compliance.”
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.