BAM Key Details: 

  • CoStar Group, Inc. has reached a definitive agreement to acquire Matterport, Inc. 
  • Founded in 2011, Matterport has become the global leader in 3D home tour technology, producing hundreds of thousands of photo-realistic virtual tours or “digital twins” every month. 
  • CoStar is an early adopter of Matterport 3D technology and has incorporated the company’s digital twins across its online real estate platforms, including Apartments.com, LoopNet, CoStar, and Homes.com. 

On Monday, April 22, CoStar Group, Inc., announced an agreement to acquire all outstanding shares of Matterport with a cash and stock transaction valued at $5.50 per share—adding up to an estimated $1.6 billion of enterprise value. 

Andy Florance, founder and CEO of CoStar Group, summed up the reasoning behind the acquisition in a statement: 

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 devices, 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

Based on the terms and conditions of the acquisition agreement, Matterport stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock. 

From early investment to full partnership

Matterport was founded in 2011 and has since become the leading name associated with 3D home tours. Supporting Matterport’s growth is its global network of several thousand professional photographers, capture service technicians, and service partners responsible for creating hundreds of thousands of new 3D “digital twins” (photo-realistic digital tours) for properties every month. 

Real estate marketers have used Matterport’s 3D technology in almost every sector of real estate. For its part, CoStar Group has been an early adopter of Matterport tech, incorporating Matterport 3D property tours across its platforms, including Apartments.com, LoopNet, CoStar, and Homes.com. As of now, CoStar has nearly 300,000 Matterport “digital twins available across its entire online property marketplace. 

Just last month, Apartments.com had over 7.4 million views of Matterport 3D tours. And per analytics data, consumers spent 20% more time on apartment listings that featured Matterport tours. CoStar plans to use the same technology on Homes.com to make it the most comprehensive and visitor-friendly residential real estate portal on the market—a goal it has been vocal about over the past year.  

Matterport has built one of the most extensive and precise collections of spatial property data in the world, covering more than 12 million spaces in 177 countries, and representing over 38 billion square feet of digital property under management. 

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

Matterport chair and CEO

What’s next?

Both parties expect the transaction to be completed during the year, though it remains subject to the approval of Matterport stockholders as well as the satisfaction of customary closing conditions. 

So far, the Matterport Board of Directors is unanimous in its support. Directors, officers, and certain other Matterport stockholders, accounting for roughly 15% of the company’s fully diluted shares, have entered into voting agreements to support the deal. 

The transaction is also subject to a 10% symmetrical collar based on a CoStar Group share price of $86.02 (as the midpoint). 

CoStar leadership will provide more details on the Matterport acquisition during its earnings conference call at 5:00 pm ET on Tuesday, April 23.