Onthehouse property website sold to CoreLogic RP Data
The onthehouse property website, which will include the Residex data base founded by John Edwards, has been bought by CoreLogic RP Data.
OTH's consumer online division (onthehouse.com.au, Residex and REAN, the Real Estate Ad Network) fetched $3 million.
The stockmarket listed onthehouse Group’s strategy is now solely focused on its real estate software division.
"The board believes the business is now funded to grow Console’s real estate software products market share and leverage new revenue opportunities through integrating or building other services to real estate agents and their clients."
Earlier this year it was signalled the property website was set to be shut down after its board ended negotiations with realestateVIEW just before contracts were due to be signed on the national price data base.
"In the absence of a sale agreement for the onthehouse.com.au and media businesses, they will be closed by April 2016 at an estimated closure cost of circa $1.7 million," the ontheouse company said in a statement to the ASX earlier this year.
No white knight emerged until today.
Residex was initially intended to be retained in the envisaged remaining restructure, having been forecast to deliver revenues of more than $2 million in FY16 and to operate at a break even position going forward.
It was 2012 when onthehouse acquired the last tranche to own 100% of property data business Residex.
onthehouse acquired a half-share in May 2011.
The second 50% of Residex cost onthehouse $3.5 million.
Residex was founded by John Edwards in 1990 to to develop house price indices for the NSW state government and has since added expanded historical residential data, suburb reports and valuation reports to its national mix of products and services.
Residex hold more than 350 million records provided to the property industry and the public dating back to 1865.
Following the sale of COD division announced today, the onthehouse company’s cash position has materially improved through the lower COD exit costs.
The estimated but now avoided cost announced in February to close the business was $1.7 million.
The estimated cost to the company to exit COD has now been revised to $1.5 million which includes professional fees on the sale of COD.
The company’s cash position is $3.2 million better off than previously expected under a COD shutdown scenario.
The group chief Chris Meehan advised discussions with the Macquarie Group hostile takeover consortium are continuing.
"onthehouse will continue to keep the market informed in accordance with its continuous disclosure obligations," said Chris Meehan.
The takeover consortium included CoreLogic RP Data.
