Matterport, a spatial data company leading the digital transformation of the built world, announced that it has entered into a definitive agreement with CoStar Group, a leading provider of online real estate marketplaces, information, and analytics in the property markets, under which CoStar Group will buy all outstanding shares of Matterport in a cash and stock transaction valued at $5.50 per share, representing an equity value of about $2.1 billion and an enterprise value of about $1.6 billion based on the closing price for CoStar Group common stock on April 19, 2024.
Under the terms of the agreement, which Matterport’s Board has unanimously approved of Directors, Matterport stockholders will receive $2.75 in cash and $2.75 in CoStar Group common stock for each share of Matterport common stock.
Launched in 2011, Matterport pioneered the development of the first 3D capture solution to deliver dimensionally accurate, photorealistic virtual tours or digital twins for any type of property. And Matterport’s proprietary and patented technology enables anyone to digitize a property with various camera technologies including cameras found on most smartphones. And Matterport also produces a line of innovative 3D capture devices, including the company’s flagship LiDAR-based Pro3 camera (capable of high-precision indoor and outdoor capture). At the heart of the solution is Cortex, which is a powerful AI software engine that automatically generates the 3D digital twin and virtual tour while providing property insights like detailed property dimensions, room layouts, and more.
Matterport’s 3D technology is utilized in nearly every real estate sector, spanning residential, commercial, hospitality, retail, industrial spaces, etc. Over the years, Matterport curated the most extensive and precise collection of spatial property data worldwide, with 12+ million spaces captured in 177 countries and representing over 38 billion square feet of digital property under management. Matterport has also established a global network of several thousand photographers, capture services technicians, and service partners, producing hundreds of thousands of new 3D digital twins for properties each month.
CoStar runs some of the most effective and widely recognized real estate information solutions and online property marketplaces worldwide, including Apartments.com, LoopNet, CoStar, and Homes.com, all of which feature Matterport’s 3D virtual tours. CoStar was one of the first adopters of Matterport’s technology and currently has almost 300,000 Matterport digital twins available in the CoStar information product and online property marketplaces.
The advertisers on CoStar Group marketplaces clearly recognize the value of Matterport virtual tours. And in March 2024, there were over 7.4 million views of Matterport 3D Tours on Apartments.com, with consumers spending 20% more time viewing an apartment listing when Matterports were available. CoStar plans to utilize Matterport in a similar fashion on Homes.com to further enhance the most comprehensive agent, seller and buyer friendly residential portal on the market.
The deal, which is expected to be completed during the year, is subject to the approval of Matterport stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. The directors, officers and certain other stockholders of Matterport, representing about 15% of Matterport’s fully diluted shares, have entered into voting agreements to support the transaction. The deal is subject to a 10% symmetrical collar based on a CoStar Group share price of $86.02 as the midpoint.
Qatalyst Partners is serving as the financial advisor, and Foley & Lardner LLP is serving as the legal advisor to Matterport.
KEY QUOTES:
“CoStar Group and Matterport have nearly identical mission statements of digitizing the world’s real estate. I look forward to welcoming Matterport to the CoStar Group family and believe that we will be stronger together, in pursuit of our common mission. The world has changed and today a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property. There is no better way to remotely experience space than via Matterport. 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.”
– Andy Florance, Founder and CEO of CoStar Group
“We are thrilled to join forces with CoStar Group, a long-standing customer and partner with a shared vision for transforming global real estate through technology and digitization. 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. Importantly, it offers Matterport’s stockholders the opportunity to participate in the value creation and future growth prospects of our combined efforts.”
– RJ Pittman, Chair and CEO of Matterport
