Onthehouse Acquires Further 50% of Residex

Brisbane-based online real estate content and services platform, Onthehouse Holdings Limited, announced that it has acquired a further 50% interest in Residex Pty Ltd, taking its ownership interest to 100%.

Highlights:

• Onthehouse acquired 50% of the shares in Residex.
• The acquisition price was $3.5 million which will be funded through a combination of debt($2.5m) and working capital ($1.0m).
• The acquisition provides significant strategic benefits and synergies.
• The transaction is expected to be earnings accretive in FY13.

The acquisition of Residex provides significant strategic benefits for Onthehouse. Importantly, it facilitates the integration of a number of pertinent real estate data licence assets and proprietary real estate information collected over Residex’s 20 year plus history. Residex has also developed one of Australia’s leading automated valuation methodology (AVM) technologies which is utilised by a number of Australia’s leading banks and financial institutions.

Residex’s intellectual property and technology will enhance Onthehouse’s operating performance across its businesses. Synergies will be derived from combining data and technology operations across the two companies.

Onthehouse Managing Director and CEO, Mr Michael Fredericks, said “We are excited to be completing the acquisition of Residex, one of Australia’s most well known and respected real estate data and analytics companies. We look forward to adding Residex’s clients to Onthehouse’s growing client base, which includes a number of Australia’s leading banking and mortgage broking brands. This transaction represents another material step towards establishing Onthehouse as Australia’s leading real estate data and solutions company.”

Onthehouse has also announced that Ms. Gail Pemberton has been appointed Chairman of the Board of the Company. She was appointed interim Chairman on the resignation of Mr. Jim McKerlie as Chairman in June 2012.