Warchi/E+ via Getty Images
Update at 10:00 am ET: updates share move of both companies
CoStar (NASDAQ:CSGP) said it will acquire spatial data company, Matterport (NASDAQ:MTTR) in a cash and stock transaction valued at $5.50 per share reflecting an estimated $1.6 billion of enterprise value.
Under the terms of the deal Matterport (MTTR) stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group (CSGP) common stock for each share of Matterport common stock.
MTTR shares soared by a record 187% after resumption of trade, while CSGP up 2.1%.
Matterport was founded in 2011 and develops 3D capture solutions to deliver dimensionally accurate, photorealistic virtual tours or “digital twins” for any type of property.
The transaction, which is expected to be completed during the year, has been unanimously approved by the MTTR board.
“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,” said CEO and founder of CoStar (CSGP) Andy Florance, Founder and CEO of CoStar Group
MTTR is headquartered in California and has ~440 employees, with FY revenue of $158 million.