REA Group Ltd (ASX:REA, “REA”) today announced that it has entered into a Scheme Implementation Agreement (“SIA”) with Mortgage Choice Limited (ASX:MOC, “Mortgage Choice”) to acquire 100 per cent of the outstanding shares in Mortgage Choice for $1.95 cash per share (“the Offer”) by way of a scheme of arrangement (“Scheme”). The Offer represents an enterprise value of approximately $244 million.

Mortgage Choice is a leading Australian mortgage broking business with more than 500 brokers, 380 franchises across the country, and over 30 lending partners. It has a loan book of $54 billion dollars and settlements of $11 billion dollars in the 12 months to December 2020(1). Mortgage Choice reported net revenue(2) of $22.2 million and net profit after tax of $4.1 million for the 6 months to December 2020(3).

Accelerating REA’s financial services strategy The proposed acquisition aligns with REA’s financial services strategy by:

•  Leveraging REA’s digital expertise, high intent property seeker audience and unique data insights across a larger network
•  Providing a compelling opportunity to establish a leading mortgage broking business with increased scale
•  Complementing the existing Smartline broker footprint resulting in greater national broker coverage

REA Group delivers strong performance despite volatile market conditions Financial highlights from core operations1 compared to prior corresponding period2:

• Revenue3 of $430.4m, down 2%

• Operating expenses of $145.8m, down 13%

• EBITDA4 (including associates) of $290.2m, up 9% • Net Profit of $172.1m, up 13%

• Interim dividend of 59 cents per share, up 7%

• EPS of 130.7 cents, up 13%

1 Financial results/highlights from core operations exclude significant non-recurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs.

2 All financial growth rates refer to YoY comparisons unless otherwise stated.

3 Revenue is defined as revenue from property and online advertising and revenue from Financial Services less expenses from franchisee commissions.

4 EBITDA includes share of associates and joint ventures.

Also Presentation

https://rea3.irmau.com/site/PDF/d52b76c3-a286-40c6-a61e-f1b5edf3c73c/Appendix4DandInterimFinancialReportH1FY21