REA proposes acquisition of Mortgage Choice
REA Group has entered into a Scheme Implementation Agreement (SIA) with mortgage brokers Mortgage Choice Limited to acquire 100% of the outstanding shares in Mortgage Choice.
The offer represented an enterprise value of approximately $244 million, worth $1.95 per share.
The Mortgage Choice board had unanimously recommended that shareholders vote in favour of the scheme.
REA said the proposed acquisition aligned with its financial services strategy by:
- Leveraging REA’s digital expertise, high intent property seeker audience and unique data insights across a larger network;
- Providing a compelling opportunity to establish a leading mortgage broking business with increased scale; and
- Complementing the existing Smartline broker footprint resulting in greater national broker coverage.
Owen Wilson, REA Group chief executive, said the acquisition represented an “exciting” opportunity for REA to create a leading broking business.
“It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities,” Wilson said.
Vicki Allen, Mortgage Choice chair, said: “Joining the REA network creates a significant opportunity to leverage its deep digital capabilities and expertise, combined with access to a large and engaged consumer audience.”
AUTHOR
Chris Dastoor
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