Costar, a real estate heavyweight with a market cap of $34.84 billion, operates marketplaces such as Apartments.com, Homes.com and LoopNet. The company plans to incorporate Matterport’s virtual tours on Homes.com. However, investors may be wary of the deal getting blocked by regulators, as Costar's previous attempt to acquire RentPath was derailed by an FTC antitrust lawsuit. The deal is still subject to regulatory approvals.
Key takeaways:
- Digital twin platform Matterport has agreed to be acquired by Costar in a cash-and-stock deal of $5.50 per share, giving it an enterprise valuation of about $1.6 billion.
- The deal represents a 212% premium over Matterport’s last closing share price before the deal was announced, a significant boost for the company whose shares had been struggling.
- Costar, a real estate heavyweight with a market cap of $34.84 billion, plans to incorporate Matterport’s virtual tours on its platforms, including Homes.com.
- The acquisition is subject to regulatory approvals, and there may be concerns over potential antitrust issues, given Costar's previous failed attempt to acquire RentPath in 2020 due to an FTC lawsuit.