Domain (ASX:DHG) share price lower despite key $60m acquisition

www.fool.com.au
3 min read
fairly difficult
The Domain Holdings Australia Ltd (ASX:DHG) share price is edging lower on Thursday following the announcement of a key acquisition...
The Domain Holdings Australia Ltd (ASX: DHG) share price is edging lower on Thursday morning.

At the time of writing, the property listings company's shares are down 0.5% to $5.23.

Why is the Domain share price edging lower?

The Domain share price is trading lower after it followed the lead of REA Group Limited (ASX: REA) by bolstering its offering with an acquisition.

According to the release, Domain has entered into a binding agreement to acquire Insight Data Solutions (IDS) for $60 million. Management believes this marks another step forward in executing on its marketplace strategy.

However, given that IDS is expected to record revenues of $7 million in FY 2022, some investors may feel Domain has overpaid. This may explain some of the weakness in the Domain share price today.

Why acquire IDS?

The release notes that Domain is on a journey to expand its addressable market beyond agents and consumers to financial institutions and government.

The company believes the acquisition of IDS establishes Domain as a…
James Mickleboro
Read full article