CoStar Acquires Matterport for $1.6 Billion

By Bobby Samwell • Monday, April 22 15:18 • Permanent Link

Costar Group, Inc. (NASDAQ: CSGP) has announced its definitive agreement to acquire all outstanding shares of Matterport in a cash and stock transaction valued at $5.50 per share, reflecting an estimated $1.6 billion of enterprise value. This acquisition is expected to increase the development and deployment of advanced AI and digital twin technology across all of Costar Group’s product lines.

Matterport, founded in 2011, is recognized as the global leader in immersive 3D digital twins and artificial intelligence for the real estate industry. The company's revenue for the year ending December 31, 2023, was $158 million, representing a growth of 16% on a year-over-year basis compared to 2022.

Matterport's 3D technology is utilized in nearly every sector of real estate, with over 12 million spaces captured in 177 countries, representing more than 38 billion square feet of digital property under management. Furthermore, the company has established a global network of several thousand photographers, capture services technicians, and service partners producing hundreds of thousands of new 3D digital twins for properties each month.

Costar Group, a leading provider of online real estate marketplaces, information, and analytics, operates some of the most effective and widely recognized real estate information solutions and online property marketplaces in the world. Currently, there are almost 300,000 Matterport digital twins available in the Costar information product and online property marketplaces. In March 2024, there were over 7.4 million views of Matterport 3D tours on apartments.com, with consumers spending 20% more time viewing an apartment listing when Matterports were available.

The acquisition of Matterport has been unanimously approved by the Matterport board of directors and is subject to the approval of Matterport stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

Costar Group plans to provide additional information about the Matterport acquisition during their earnings conference call at 5:00pm ET on April 23, 2024. Today the company's shares have moved 1.4% to a price of $85.47. Check out the company's full 8-K submission here.

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