According to the terms of the definitive agreement, the stockholders of Matterport will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock
3D digital twins firm Matterport to be acquired by CoStar in $1.6bn deal. (Credit: Andreas Volz from Pixabay)
CoStar Group, a provider of online real estate marketplaces and property markets information and analytics, has agreed to acquire spatial data company Matterport in a cash and stock transaction representing an estimated enterprise value of $1.6bn.
According to the terms of the definitive agreement, the stockholders of Matterport will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock.
The transaction also reflects an equity value of about $2.1bn.
Established in 2011, Matterport develops 3D capture solutions to offer dimensionally precise, photorealistic virtual tours or digital twins for any type of property.
The firm’s proprietary and patented technology empowers users to digitise a property using a variety of camera technologies, including cameras available on most smartphones.
Besides, Matterport produces a range of new 3D capture devices, such as its flagship LiDAR-based Pro3 camera which is capable of high-precision indoor and outdoor capture.
The company’s 3D technology is leveraged in various sectors of real estate, comprising commercial, residential, industrial spaces, hospitality, retail, and others.
Matterport Chair and CEO RJ Pittman said: “This transaction is another significant milestone that acknowledges the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence.
“With CoStar Group’s expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide.”
Through the deal, CoStar Group aims to increase the development and deployment of advanced artificial intelligence (AI) and digital twin technology across its product lines.
Headquartered in Washington, DC, CoStar Group operates several real estate information solutions and online property marketplaces worldwide including CoStar, Apartments.com, LoopNet and Homes.com.
It carries out expansive, ongoing research to generate and maintain the largest and most comprehensive database of real estate information.
CoStar Group founder and CEO Andy Florance said: “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.”
The deal is expected to be closed in 2024, subject to the approval of Matterport stockholders and the satisfaction of customary conditions, including applicable regulatory approvals.
The transaction has been unanimously approved by Matterport’s board of directors.