REA Group has today announced a proposal to acquire publicly listed mortgage-broking firm Mortgage Choice.
REA said the proposed acquisition would accelerate REA’s financial services strategy to create a leading mortgage broking business with scale.
In a statement to the ASX, REA Group said the purchase of Mortgage Choice would leverage REA’s digital expertise, high-intent property seeker audience and unique data insights across a larger network.
The statement said acquiring the Mortgage Choice business would provide “a compelling opportunity to establish a leading mortgage broking business with increased scale” and complement the existing Smartline broker footprint, resulting in greater national broker coverage.
REA Group CEO Owen Wilson said the proposed acquisition of Mortgage Choice was “an exciting development that will bring together our well-established Smartline business and franchisee network with the complementary Mortgage Choice organisation and its significant broker footprint”.
“Each month, 12 million Australians turn to realestate.com.au to search, find and finance their next property,” Mr Wilson said.
“Together with our Smartline business, having Mortgage Choice join the REA network will enable us to provide our audience with an even greater number of expert brokers to meet their financing needs.”
Smartline CEO Sam Boer added: “Like Smartline, Mortgage Choice is grounded in strong values, a commitment to innovation, value-added client services and has a talented and passionate team.
“We are looking forward to working with a like-minded organisation and welcoming Mortgage Choice into the REA family,” Mr Boer said.
The transaction is still subject to conditions being met, including Mortgage Choice shareholder and regulatory approvals, and is expected to take approximately three months to complete.
“Between now and the completion of the acquisition there will be no change to the service, support or products our clients receive from Smartline,” Mr Boer said.
“Once the transaction completes we look forward to working with Mortgage Choice to add further value to our clients, franchisees and business partners.”
