CoStar Group is set to buy Homesnap, an app and technology provider for residential real estate agents, for $250 million, the Wall Street Journal reported.
The all-cash acquisition is expected to close later this year.
The acquisition would mark CoStar’s first major step into the single-family-home market, which dwarfs the size of the commercial real estate market. CoStar bills itself as the world’s largest provider of commercial real estate information and analysis.
Homesnap has about 150 employees, with this year’s revenue expected to be about $40 million, up about 45 percent form 2019. About 300,000 residential agents use the company’s app to manage and analyze their listings and others.
By merging, CoStar and Homesnap would expand each others’ reach, said Andrew Florance, CoStar’s founder and CEO.
“I would say that 50 percent of our broker clients do some residential and, of the top 100 residential firms, 80 percent do some commercial,” he said. “So we would think these tools as they come together would be pretty powerful.”
CoStar has also expressed interest in acquiring CoreLogic, one of the largest residential real estate companies valued at $6 billion, according to the Journal.
[WSJ] — Akiko Matsuda