CoStar Group to Acquire Domain Holdings Australia for Enhanced Real Estate Service Offerings

Domain Holdings Australia Ltd. has announced a proposed scheme of arrangement where CoStar Group will acquire 100% of its shares, pending shareholder approval and court sanction. The acquisition could integrate Domain's real estate network with CoStar Group's extensive network, potentially benefiting stakeholders through enhanced service offerings and market reach. The most recent analyst rating on Domain Holdings Australia Ltd. stock is a Sell with a A$2.80 price target.

Title: CoStar Group Inc. Proposes Acquisition of Domain Holdings Australia Ltd.

CoStar Group Inc. (CSGP) has announced a proposed acquisition of Domain Holdings Australia Ltd. (DHG), pending shareholder and court approvals. The acquisition could integrate Domain's real estate network with CoStar Group's extensive network, potentially benefiting stakeholders through enhanced service offerings and market reach.

On Tuesday, shares of CoStar Group Inc. (CSGP) rose 2.39% to $95.59, reaching a new 52-week high of $95.59. This gain was achieved despite an overall grim trading session, with the S&P 500 Index (SPX) falling 0.30% to 6,370.86 and the Dow Jones Industrial Average (DJIA) dropping 0.46% to 44,632.99. The stock has seen seven consecutive days of gains, highlighting investor confidence in the company's growth prospects [1].

The proposed acquisition, structured as a scheme of arrangement, aims to integrate Domain Holdings Australia Ltd. (DHG) into CoStar Group's extensive real estate network. Domain Holdings Australia Limited operates within the real estate industry, providing digital property advertising and media services. The company's focus is on connecting property seekers with real estate agents, offering a platform for property listings and related services [2].

CoStar Group has secured Foreign Investment Review Board (FIRB) approval for the acquisition, which is now subject to shareholder and court approvals. The acquisition comes as CoStar Group reported strong second-quarter 2025 results, with revenue increasing by 15% year-over-year to $781 million. Net income was $6.2 million, and adjusted EBITDA reached $85 million, up 108% from the previous year. The company also announced its quarterly net new bookings of $93 million, a 65% increase from the prior quarter [4].

Analysts have responded positively to CoStar Group's results. BMO Capital has raised its price target for CoStar Group to $89.00, while maintaining a Market Perform rating. Needham raised its price target to $105, Citi to $100, and Goldman Sachs to $105, all with a Buy rating. JPMorgan increased its price target to $101, reflecting a positive growth outlook [4].

The most recent analyst rating on Domain Holdings Australia Ltd. (DHG) stock is a Sell with a A$2.80 price target. The acquisition could significantly impact Domain's market positioning by integrating with CoStar Group's extensive real estate network, potentially benefiting stakeholders through enhanced service offerings and market reach [2].

References:
[1] https://www.marketwatch.com/data-news/costar-group-inc-stock-rises-tuesday-outperforms-market-80c7ecce-f9191815de00
[2] https://www.tipranks.com/news/company-announcements/domain-holdings-announces-acquisition-by-costar-group
[4] https://www.ainvest.com/news/costar-group-raises-annual-revenue-forecast-q2-earnings-beat-estimates-2507/