CoStar Group Announces Acquisition of Matterport for $5.50 per Share in Cash and Stock

CoStar Group Announces Acquisition of Matterport for .50 per Share in Cash and Stock

Online real estate market provider CoStar Group (NASDAQ:) announced Monday that it has entered into an agreement with virtual tour software company Matterport (NASDAQ:) to acquire all of the company’s outstanding shares in a cash-and-stock transaction. CoStar will pay $5.50 per share, reflecting an enterprise value of $1.6 billion for Matterport.

Matterport shareholders are expected to receive $2.75 in cash and $2.75 in CoStar Group stock for each share of Matterport common stock they own.

“CoStar Group and Matterport have nearly identical mission statements regarding the digitalization of global real estate,” said Andy Florance, founder and CEO of CoStar Group. “The world has changed and today Matterport is the new open house or property tour… CoStar Group intends to support and invest in research and development opportunities to further develop Matterport’s space technology , including the application of AI and machine learning to extract information from the 3D Spatial Data Library as well as the use of generative artificial intelligence to imagine and reimagine physical spaces.

The transaction, which is expected to be completed later this year, is subject to Matterport shareholder approval and was unanimously approved by Matterport’s board of directors.

Speaking about the acquisition, RJ Pittman, Chairman and CEO of Matterport, added: “With CoStar Group’s extensive reach and scale in real estate research and analytics and our commitment common drive for innovation, we believe this powerful combination will transform the way properties are marketed, sold, and managed around the world. Importantly, it provides Matterport shareholders with the opportunity to participate in the value creation and future growth prospects of our combined efforts.

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Matterport was founded in 2011, providing the first 3D capture solution to deliver dimensionally accurate and photorealistic virtual property tours. The company’s patented technology makes it possible to “digitize a property”, particularly with smartphone cameras. Matterport’s flagship LiDAR-based Pro3 camera is another solution that enables high-precision capture and integrates the Cortex AI software engine.

In addition to developing and providing technology solutions enabling virtual tours, the company has built a vast collection of real estate data from around the world, including more than 12 million spaces in 177 countries, totaling more than 38 billion square feet of properties under management. This spans various real estate sectors including hospitality, residential, commercial, retail, industrial, and more. The company also has an extensive global network of photographers, technicians and other partners who produce “3D digital twins” for properties.

Information solutions and real estate marketplaces operated by CoStar include, LoopNet, CoStar and, all of which offer Matterport’s 3D virtual tours. CoStar, an early adopter of Matterport technology, already offers approximately 300,000 Matterport digital twins in its markets.

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