CoStar Group announced on February 28 the successful completion of its previously announced acquisition of Matterport, a 3D camera and property mapping company. As a result of the merger, Matterport’s shares will be delisted from Nasdaq, and its board of directors has been restructured.
Last April, CoStar first announced the plan to acquire all outstanding shares of Matterport in a cash and stock transaction valued at $5.50 per share, reflecting an estimated $1.6 billion of enterprise value. Under the terms and subject to the conditions of the agreement, Matterport stockholders would receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock.
“CoStar Group and Matterport have long shared a vision of digitizing the real estate industry, and today, we officially unite to realize that future together,” said Andy Florance, founder and CEO of CoStar Group in a statement. “Matterport’s cutting-edge 3D capture and AI-powered property insights have already transformed how residential and commercial properties are marketed and experienced. By integrating Matterport’s groundbreaking digital twin technology with our vast property data and online marketplaces, we are creating an unparalleled solution for buyers, sellers and renters to explore properties with greater depth and insight than ever before.”
Matterport pioneered what the company refers to as 3D digital twins, claiming to allow property owners, buyers and renters to experience properties remotely with immersive accuracy. With over 14 million spaces and 50 billion square feet digitized across 177 countries, Matterport also claims the world’s largest and most precise spatial data library, empowering real estate professionals with insights and visualization tools.
“This is an exciting milestone for Matterport, as we join forces with CoStar Group to accelerate our impact on the global real estate industry,” said RJ Pittman, chairman and CEO of Matterport. “From residential to commercial, our technology is redefining how residential and commercial spaces are discovered, marketed and transacted. With CoStar Group’s scale and resources, we can fast-track innovation, deepen AI-driven analytics and deliver even greater value to our customers worldwide.”
In a release last week, CoStar said it “expects to eliminate roles in 2025 from efficiencies gained by using AI and reallocate those resources into other areas. The company also anticipates reducing some roles during normal annual performance management.”
But the company added it expects to add 1,000 new jobs this year, including 500 through the Matterport acquisition, according to the release.
