Property portal MyHome.ie has been bought by The Irish Times Ltd, publisher of The Irish Times, for up to €50 million.
The deal will see an initial payment of €40 million followed by an additional €10 million, deferred over five years. This payment is linked to targets set out in the business plan for MyHome.
Maeve Donovan, managing director of The Irish Times, said the property portal would continue on a standalone basis "but availing of revenue and operational synergies which can be brought by The Irish Times Group.
"Combining MyHome with the strength of The Irish Timesnewspaper and our online operations in Ireland.comcreates a dynamic force for growth in the Irish online property market."
Ms Donovan said the acquisition is part of The Irish Times's strategy of developing a major digital media business.
She added that the former MyHome.ie shareholders - Ireland's three largest estate agents of Sherry FitzGerald, Douglas Newman Good and Gunne Residential - will continue to advertise on the site.
Sherry FitzGerald holds a 25 per cent stake, while the other two agents have 20 per cent stakes, as does AIB. Employees and other investors hold the remaining shares.
Chief executive Jim Miley, who is also a shareholder, will continue to manage the business.
The three estate agents founded MyHome.ie in 2001. It is used by more than 850 estate agents to advertise and is visited by more than 300,000 users each month.
MyHome reported earnings before interest tax depreciation and amortisation of €2 million on turnover of €5 million in the twelve months to December 2005. These are expected to increase to €2.5 million and €6.2 million respectively this year.
The transaction will be notified to the Competition Authority for approval.