Rightmove: REA Eyes Potential Acquisition

Australia's REA Group confirmed on Monday that it is considering a potential cash and share offer for to acquire Rightmove (LON: RMV), the leading online property marketplace in the United Kingdom.

Reports emerged Sunday evening that the company was considering an offer, with REA confirming the news on Monday.

REA Group, an online real estate advertising company, sees Rightmove as a strategic fit due to its strong market position and alignment in terms of business focus, innovation, and cultural values.

The combined entity would create a global powerhouse in the digital property space, with number one positions in both Australia and the UK. REA owns sites, including realestate.com.au and realcommercial.com.au.

REA sees the potential acquisition as a “transformational opportunity” for both companies. It believes that its expertise and capabilities can enhance customer and consumer value across the combined portfolio while also creating a more diversified and globally focused digital property company.

“The REA Board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns,” REA said in its statement.

It added that it “considers that a combination of the two businesses would provide a significant opportunity to unlock shareholder value.”

While there is no guarantee that an offer will be made, REA has confirmed that it will provide an update by September 30, 2024, regarding its intentions.