CoStar Group to Acquire Matterport in $1.6 Billion Deal

CoStar Group, a prominent provider of online real estate marketplaces and analytics, has announced the acquisition of Matterport in a cash and stock transaction valued at $5.50 per share, equivalent to an estimated $1.6 billion of enterprise value.

Matterport, established in 2011, is renowned for developing the first 3D capture solution, enabling the creation of accurate virtual tours for various property types. Its technology, including the Cortex AI software engine, has facilitated the digitization of over 12 million spaces in 177 countries, covering more than 38 billion square feet of digital property.

CoStar Group, well-known for its real estate information solutions and online marketplaces, plans to leverage Matterport's 3D virtual tours on its platforms, capitalizing on the increased engagement observed with Matterport tours. The acquisition, subject to customary closing conditions and regulatory approvals, has received unanimous approval from Matterport's Board of Directors. Matterport, with about 440 employees and a revenue of $158 million in 2023, is set to provide further details during CoStar Group's earnings conference call on April 23, 2024.