Australia’s FIRB Approves CoStar to Acquire Domain Holdings

Australia’s Foreign Investment Review Board (FIRB) on Thursday approved the proposed acquisition of Sydney-based digital property portal Domain Holdings Australia Limited by the US-based CoStar Group through its indirect wholly-owned subsidiary, Andromeda Australia SubCo Pty Limited by way of scheme of arrangement.

CoStar, through its subsidiary Andromeda Australia, has proposed to buy all shares it does not already own in Domain for $2.93 per share and the deal gives Domain Holdings an implied enterprise value of $1.99 billion. The shares of Domain Holdings last closed at $2.91.

It may be recalled that Domain Holdings has rejected an earlier bid of $1.72 billion was subsequently rejected before CoStar tabled its improved bid in May this year.

CoStar, which is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology in the property markets, is already the second biggest shareholder in Domain Holdings with its 16.9% interest, which it acquired In February this year, at $2.78 per share for a total purchase price of approximately $285 million, although it will be excluded from the shareholder vote.

CoStar has notified Domain that it has received notice from the FIRB saying that the Australian government has no objection to the proposed acquisition, subject to certain conditions that are acceptable to CoStar.

Shareholders’ Approval

The acquisition is subject to approval of Domain shareholders (other than excluded shareholders) at the upcoming meeting which is expected to be held on 4 August 2025, and other conditions. The New South Wales’ Supreme Court on June 30 approved a shareholder vote for Domain to decide on CoStar’s proposed acquisition of the company.

On receiving the proposal from CoStar, the Domain Holdings’ Board unanimously recommended that Domain shareholders vote in favour of the proposal, and concluded that the proposal was is in their best interests. Domain’s Directors each intend to vote all the Domain shares held or controlled by, or on behalf of, them in favour of the proposal.

Nine Entertainment Supports Acquisition

Nine Entertainment Co. Holdings Limited, the controlling shareholder of Domain, holding approximately 60.05% of the ordinary Domain shares on issue, has confirmed that it intends to vote all of the Domain shares it holds or controls in favour of the proposal.