Virginia-based portal CoStar Group has finished its acquisition of spatial mapping company Matterport. The companies expected to finish the deal by the end of March, putting them 31 days ahead of schedule.
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Nearly a year after announcing its acquisition of spatial mapping company Matterport, Virginia-based portal CoStar Group has completed the $1.6 billion deal. The companies anticipated closing the acquisition at the end of March, putting them a month ahead of schedule.
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Andy Florance | Credit: CoStar Group
“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,” CoStar founder and CEO Andy Florance said in a written 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,” he added.
CoStar revealed the acquisition plan in April 2024, with Matterport’s board of directors unanimously approving the deal. The companies had a longstanding relationship before the deal, with CoStar being one of Matterport’s biggest clients.
Florance and Matterport CEO RJ Pittman said their companies had shared values and goals, with CoStar poised to benefit from Matterport’s cutting-edge digital twin technology and Matterport poised to benefit from CoStar’s expansive reach and scale in property research and analytics.
“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 2024. “The world has changed and today a Matterport is the new open house or property tour.”
The Matterport acquisition has been a key part of CoStar’s earnings outlook for the past year, as the company plans to leverage Matterport’s 3D interactive floor plans to bolster the Homes.com search experience. In CoStar’s third quarter earnings, Florance said integrating Matterport technology was a key part of bringing Homes.com out of a membership growth plateau, alongside hiring a larger dedicated sales team.
The deal’s closing comes on the heels of Q4 earnings. CoStar tallied its 55th-consecutive quarter of double-digit revenue growth and Matterport upped its subscription revenue 14 percent year over year, amid a shift from a revenue model that focused on its Pro3 camera. Matterport highlighted the acquisition in its earnings call, alongside the launch of its Matterport Marketing Cloud and several key software updates to its digital twin technology.
“These accomplishments highlight our steadfast dedication to achieving strong revenue growth and profitability, which we believe positions Matterport for continued success in the future,” Matterport CFO JD Fay said of the company’s scaling success, despite $95 million in litigation costs that hobbled progress on slimming net losses.
In Friday’s announcement, Pittman said closing the deal is an “exciting milestone” for Matterport and will allow the company to “accelerate [its] impact on the global real estate industry,” which includes 14 million spaces and 50 billion square feet digitized across 177 countries.
“This is an exciting milestone for Matterport, as we join forces with CoStar Group to accelerate our impact on the global real estate industry,” he said. “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.”
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