REA GROUP SNAPS UP FLATMATES.COM.AU

Written on the 27 April 2016

REA GROUP SNAPS UP FLATMATES.COM.AU

SHARES in REA Group (ASX:REA) surged around 4 per cent this week after the online real estate business announced it had acquired the country's largest share accommodation website Flatmates.com.au.

REA Group bought the Flatmates website for an initial $25 million although it may pay more depending on the performance of the site over the next two years.

Flatmates was established in 1990 and is Australia's biggest share accommodation website with an average of 2.6 million visits and over 9 million flatmate searches monthly.

Completion of the transaction is expected in the coming weeks.

REA Group CEO Tracey Fellows says the purchase is on the back of enormous growth in the sharing economy.

"The share accommodation segment is one of the fastest growing segments in the Australian property market with traffic across the sector growing at over 50 per cent year-on-year," says Fellows.

"This acquisition allows us to play a more active role in helping consumers, regardless of what phase of the property lifecycle they are in, to find a home.

"Flatmates is the number one player in share accommodation by both revenue and audience. REA Group is uniquely placed to accelerate that leadership position through the sharing of technology, expertise and reach."

Flatmates co-founders Thomas Clement and Andrew Maloney called the acquisition by REA a natural progression for Flatmates.

"Integration with traditional property sectors will not only enable us to provide an enhanced experience to our current audience but also to renters, homeowners and property investors," says the duo.

Clement will continue his role as CEO of Flatmates following the transaction.


Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter