CoStar ups its bid to acquire CoreLogic
Move escalates bidding war to buy real estate data company
The fight for the future of CoreLogic continues.
CoStar Group upped its offer to acquire the real estate data company to $97 per share, an increase over its most recent offer of $95.76 per share, Bloomberg News reported.
The latest offer is also $17 per share higher than the recent agreement CoreLogic made with Stone Point Capital and Insight Partners, who agreed to buy the company for approximately $6 billion.
CoStar also attempted to sweeten the deal by structuring its offer so that shareholders would receive about $6 per share in cash, along with CoStar stock. It also offered to pay a $165 million termination fee.
“CoStar Group is committed to moving forward with such a transaction,” CoStar Chief Executive Officer Andrew Florance said in a letter to CoreLogic’s board, according to Bloomberg News. “We expect the CoreLogic board to deem this proposal to be a ‘superior proposal’ within 48 hours.”
But that may not necessarily be the case. Despite submitting a higher bid initially, CoStar was passed over by CoreLogic in favor of the offer from Stone Point Capital and Insight Partners — and it still prefers that offer, the publication reported.
In its fourth quarter earnings call, CoStar reported a 19 percent increase in revenue, largely driven by the acquisition of such companies as Ten-X, Emporis and Homesnap. It plans to acquire more companies in the residential space in 2021.
[Bloomberg News] — Sasha Jones