CoStar offers $6.9B to buy CoreLogic

Amount is 20 percent higher than deal accepted by Stone Point, Insight Partners

National /
Feb.February 16, 2021 08:27 AM
CoStar's Andy Florance and CoreLogic’s Frank D. Martell (Photos via Getty; Twitter)

CoStar’s Andy Florance and CoreLogic’s Frank D. Martell (Photos via Getty; Twitter)

CoStar isn’t going quietly into the night.

The spurned data giant — which earlier this month made a failed bid to buy CoreLogic — is back with a competing proposal to buy the company for nearly $7 billion.

The bid is 20 percent higher than a previously-accepted offer by Stone Point Capital and Insight Partners, which struck a deal to buy CoreLogic for $80 per share, or $6 billion. CoStar’s new offer amounts to $95.76 per share.

CoStar’s new bid is the latest twist in its monthslong pursuit of CoreLogic.

CoreLogic has been in play since last spring, when activists investors Senator Investment Group and Cannae Holdings began agitating for a sale. They offered $65 a share in June 2020.

In a letter sent to CoreLogic’s board Tuesday, CoStar CEO Andy Florance said he was stunned to read about the Stone Point-Insight deal, which was “materially less” than CoStar’s all-stock offer.

“We do not believe the Pending Transaction maximizes value for CoreLogic stockholders and we continue to believe in the strong strategic rationale for the combination of our two companies,” he wrote.

Citing CoStar’s prior acquisitions of LoopNet and Apartments.com, Florance said linking up would accelerate CoreLogic’s growth. And the combination of CoStar’s portfolio and CoreLogic’s residential tools would “create massive cross-selling opportunities,” resulting in “hundreds of millions of dollars in revenue synergies.”





    Related Articles

    arrow_forward_ios
    (iStock)
    First-quarter hotel sales hit 6-year high
    First-quarter hotel sales hit 6-year high
    (CoreLogic, iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Natural disasters caused $57B in property damage in 2021
    Natural disasters caused $57B in property damage in 2021
    Rendering of CoStar Group's plans in downtown Richmond, Virginia. (CoStar Group)
    CoStar Group to build new tallest building in Richmond, Virginia
    CoStar Group to build new tallest building in Richmond, Virginia
    CoStar Group Andrew C. Florance (Getty)
    CoStar profits up, but demand for apartment ads sinks
    CoStar profits up, but demand for apartment ads sinks
    Clockwise from top left: CREXi's CFO Tim Laehy, CEO Michael DeGiorgio, and CLO Kris Cheh Beck (CREXi)
    CREXi lays groundwork for public offering with CFO hire
    CREXi lays groundwork for public offering with CFO hire
    CoStar Group CEO Andrew Florance (iStock)
    CoStar Q2 net income down 17%
    CoStar Q2 net income down 17%
    The index is 24.5 percent above its previous high point in 2006. (iStock)
    U.S. home prices surge 14.6% in April, shattering records (again)
    U.S. home prices surge 14.6% in April, shattering records (again)
    REBNY's Ninve James and Trestle's Amy Gorce 
    REBNY taps CoreLogic’s Trestle to manage RLS feed transmissions
    REBNY taps CoreLogic’s Trestle to manage RLS feed transmissions
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...