CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics, has announced a significant move to enhance its digital offerings. The company is set to acquire Matterport, a global leader in immersive 3D digital twins and artificial intelligence for the real estate industry. The deal, valued at $1.6 billion, reflects CoStar’s commitment to advancing digitization and improving user experiences in the real estate sector.
The acquisition will be executed through a cash-and-stock transaction. CoStar will purchase all outstanding shares of Matterport at a per-share value of $5.50, representing a premium of approximately 216% over Matterport’s last closing price of $1.74. This strategic move aims to leverage Matterport’s cutting-edge technology and expand CoStar’s digital footprint in the real estate market.
Matterport, founded in 2011 and headquartered in Sunnyvale, California, specializes in creating 3D virtual tours of real estate properties. Their platform allows users to upload and explore scanned spaces, revolutionizing property viewing. CoStar CEO Andy Florance aptly describes Matterport as the “new open house or property tour,” emphasizing how consumers increasingly rely on mobile devices to select homes and apartments without physically visiting the properties.
Matterport boasts approximately 440 employees and its 2023 revenue surged by 16% year-on-year, reaching $158 million. CoStar, scheduled to report its first-quarter financial results soon, anticipates completing the acquisition within this year. The transaction underscores CoStar’s commitment to staying at the forefront of real estate technology and enhancing the overall user experience for buyers, sellers, and renters.
Following the announcement, Matterport’s stock price more than doubled, soaring to $4.67, while CoStar Group’s shares edged up by approximately 0.9%, reaching $84.94 in early trading. Investors and industry experts are closely monitoring the implications of this strategic acquisition, which promises to reshape the way real estate transactions occur in the digital age.
CoStar’s acquisition of Matterport signifies a pivotal moment in the real estate industry, where cutting-edge technology converges with user-centric experiences. As the deal progresses, stakeholders eagerly await the transformational impact it will have on property tours, listings, and overall market dynamics.
