Domain acquires data business IDS for $60m
Domain Holdings Australia has agreed to acquire Insight Data Solutions (IDS), in a deal worth $60 million, payable in cash.
The Nine Entertainment Co majority-owned Domain will acquire 100% of the securities in IDS Holdings Pty Limited, with completion of the deal expected in mid October.
The group, said that the deal marks another step forward in executing its marketplace strategy, as it is on a “journey to expand its addressable market beyond agents and consumers to financial institutions, and government”.
Domain CEO, Jason Pellegrino
CEO of Domain, Jason Pellegrino, said: “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.”
Established in 2013, IDS focuses on property data in two segments, government and corporate. This acquisition, Domain said, establishes it as a “market leading provider of land and property valuation, insights and analytics services into the Government sector”.
Pellegrino continued: “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.”
“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”.
The platform and its workflow tools connect many of the stakeholders in the property ecosystem, including “the Office of the Valuer General (VG), who is responsible for statutory valuation processes; the Local Government Authorities (LGAs) which levy rates based on these valuations; valuers who perform the statutory valuations; and the public whose rates are based on the statutory valuations”.
IDS founders, Louie Psaroulis, Mike Thanos and Chris Spanos, will remain at the business as part of the agreement. In a statement they said they are “excited to join” an organisation of Domain’s “calibre and capability”.
“Domain’s unique data assets and extensive industry reach will enable us to accelerate the evolution of our product offerings to government and corporate customers. IDS and Domain are a natural fit with a shared vision to deliver leading property data and analytics to the Australian market. We look forward to working closely with their leadership team.”
Pellegrino continued: “IDS is a strong standalone business and a great addition to our Property Data Solutions pillar. Through the acquisition we can support IDS to keep innovating and expanding into new markets and geographies”
Last month, Domain delivered its financial results for FY 2021, revealing a significant boost in net profit after tax, which grew 66% to $34.3 million year-on-year, also reporting a 10.7% increase in revenue to $289.6 million.
The group also announced last week that John Foong, former Uber and Google executive has been appointed as its new chief revenue officer. He will replace current group director, commercial, Tony Blamey at the end of the month
