REA Group has agreed to acquire a 35% stake in Distilled, an Irish multi-vertical digital marketplace, for roughly $409 million, as Australia's mortgage and finance markets continue to consolidate.
The firm said the proposed deal allows REA to expand its footprint beyond existing markets.
“This is an exciting opportunity to extend our core property strategy into an attractive, profitable, high growth market, with increasing adoption of vendor paid advertising and where our intellectual property and technology is directly relevant," said REA Group Chief Executive Officer Cameron McIntyre. "The investment provides immediate exposure to an exceptional business with a strong growth trajectory and a portfolio of high-growth assets."
Distilled is the parent company to property portal Daft.ie, which was co-founded in 1997 by brothers Eamonn and Brian Fallon. The corporate entity later became Distilled, and grew to include Adverts.ie, DoneDeal.ie, PropertyPal and Used Cars NI. Each brand operates as a stand-alone business.
In the year leading up to June, Distilled generated revenue of €72.4 million EUR, or $118.70 million AUD. REA said the company also delivered double-digit revenue growth over the last five years.
REA's 35% non-controlling minority purchase will be funded from debt and existing cash reserves. The proposed transaction is subject to regulatory approvals and is expected to complete before the end of the 2026 calendar year.
Distilled Chief Executive Officer and Co-Founder Eamonn Fallon is expected to continue leading the business post completion of the deal.
The Distilled-REA tie-up marks the latest in a string of deals for the digital property giant, which is also parent company to Mortgage Choice, Athena Home Loans, data services firm PropTrack, as well as real estate platforms realestate.com.au, flatmates.com.au, and property.com.au, among others.
In February, REA acquired a 70% of Simplicity Loans & Advisory, with a promise to acquire the remaining 30% of the boutique commercial finance brokerage by the end of the 2029 calendar year.
The move allowed REA to strengthen its position in Australia's growing lending market by expanding into the commercial space.
In the case of Distilled, McIntyre said: “Distilled has an experienced management team with a proven track record of building leading businesses. I look forward to working closely with Eamonn and the Distilled team to leverage our combined skills and expertise.”
Eamonn Fallon added: “We are delighted to welcome REA onboard. REA is a natural partner for Distilled, combining leadership in digital marketplaces with capabilities that can support our growth. There are clear opportunities for collaboration and we look forward to tapping into REA’s experience to create new value for customers, consumers and partners. Our shared values and strong cultural alignment provide a solid foundation for the partnership.”
More to come…
