Data firm CoStar agrees to buy smaller LoopNet for $860M

Maryland-based CoStar Group signed an agreement today to buy the rival commercial real estate data firm LoopNet for $860 million, the company said in a statement today.

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CoStar is a leading commercial real estate information provider, which includes about 1.5 million listings nationwide covering 77 billion square feet of office, retail and industrial space. LoopNet, based in San Francisco, is a leading portal for marketing commercial property, with about 500,000 listings.

CoStar had revenues of $59.6 million in the first quarter of 2011, while LoopNet, had revenues of $20.7 million. Combined, the two public companies are estimated to have annualized revenues of $321 million. The acquisition is expected to close by the end of the year.

The purchase would double CoStar’s paid subscriber base to at least 160,000, representing about 15 percent of the 1 million individuals who participate in the United States commercial real estate market, the company said. TRD