CoStar to acquire 3D scanning firm Matterport

CoStar Group is continuing to focus on expansion. The firm announced Monday that it has acquired 3D scanning company Matterport.

The Andy Florance-helmed CoStar purchased all of Matterport’s outstanding shares for $5.50 each, representing a value of $2.1 billion. Through the terms of the deal, stockholders will get $2.75 per share in cash and $2.75 in shares of CoStar Group.

According to the announcement, Matterport’s board of directors unanimously approved the deal, which is expected to be finalized later this year.

“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,” Florance said in a statement.

“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.”

In fourth-quarter 2023, CoStar Group recorded $640 million in revenue and a net income of $96 million for the quarter. The firm will announce its Q1 2024 earnings on Tuesday.