Matterport, Inc. (NASDAQ: MTTR) recently announced a definitive agreement with CoStar Group, Inc. for a cash and stock transaction valued at $5.50 per share, representing an equity value of approximately $2.1 billion and an enterprise value of approximately $1.6 billion. Under the terms of the agreement, Matterport stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock.
Matterport, founded in 2011, has been a pioneer in 3D capture solutions for delivering photorealistic virtual tours or "digital twins" for various types of properties. The company's technology is utilized across numerous sectors in real estate, with over 12 million spaces captured in 177 countries, representing more than 38 billion square feet of digital property under management.
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, including apartments.com, loopnet, costar, and homes.com, all of which feature Matterport's 3D virtual tours. 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 transaction is expected to be completed during the year, subject to the approval of Matterport stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Directors, officers, and certain other stockholders of Matterport, representing approximately 15% of Matterport’s fully diluted shares, have entered into voting agreements to support the transaction.
Andy Florance, founder and CEO of CoStar Group, expressed excitement about the acquisition, stating, "The world has changed and today a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property. There is no better way to remotely experience space than via Matterport."
RJ Pittman, chair and CEO of Matterport, emphasized the shared vision for transforming global real estate through technology and digitization, noting that the transaction with CoStar Group is a significant milestone acknowledging the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence.
The acquisition is expected to increase the development and deployment of Matterport’s advanced AI and digital twin technology, as CoStar Group intends to support and invest in research and development opportunities to further develop Matterport’s spatial technology, including the application of AI and machine learning to extract information from the 3D spatial data library as well as using generative artificial intelligence to imagine and reimagine physical spaces. Today the company's shares have moved 175.9% to a price of $4.8. If you want to know more, read the company's complete 8-K report here.
