REA Group buys stake in mortgage broking firm, inks deal with NAB

Company News

by IG Markets

REA Group (ASX:REA) has entered an agreement to acquire a majority stake in mortgage broking franchise, Smartline, while it also entered into a mortgage broking partnership with the NAB (ASX:NAB).

The real estate advertising company’s $67 million purchase of Smartline will see REA Group acquire 80.3 per cent of the company.

REA group says it will acquire the remaining 19.7 per cent in four years if the minority shareholders, existing management, do not exercise their put option to sell after three years.

Smartline has over 300 advisers with a loan book of about $25 billion.

REA says it will use cash reserve to purchase Smartline.

Meantime, the NAB and also agreed to build a mortgage broking solution, to create an end-to-end digital property search and financing experience.

The company says the investments allow REA to enter a new market with two of Australia’s most trusted and successful mortgage broking operators.

Shares in REA Group (ASX:REA) are trading 0.85 per cent lower to $65.67.