Onthehouse snaps up data company ResidexThe listed online real...

Onthehouse snaps up data company Residex

The listed online real estate company Onthehouse Holdings has bought out the remaining shares of property data company Residex.

Onthehouse will own all of the company once the acquisition proceeds on September 20. The company listed on the Australian Securities Exchange in June 2011 at $1 per share. It is now trading at 46.5¢. Onthehouse reported $20.3 million in revenue for the year ended June 30, 2012.

The Brisbane-based company paid $3.5 million – $2.5 million worth of debt and $1 million working capital.

Residex chief executive John Edwards said the business had been in his family for more than 20 years, but did not have the capital to compete with larger data companies.

“Our technology is better, but you can’t market yourself as a leading entity without the capital,’’ he said.

Mr Edwards said he would stay on as an adviser and that day-to-day operations would not change for customers.

Formed in 1990, Residex has grown to hold more than 350 million records provided to the property industry and the public. The records date back to 1865.

Onthehouse managing director and CEO, Michael Fredericks, said that the Residex intellectual property and technology would be used across the business.

Mr Fredericks said the transaction was another step towards Onthehouse becoming a leading real estate data company. Their website already draws more than 1.3 unique hits a month.

Onthehouse expects the transaction to begin adding to overall earnings from 2013
http://www.afr.com/p/business/property/onthehouse_snaps_up_data_company_1tVESTfjRgUdgmVgpmaVgL