CoStar Group has agreed to buy RentPath for $588 million, the WSJ first reported. RentPath controls real-estate websites ApartmentGuide.com, Rentals.com and Rent.com. In December, the three sites had about 28,000 properties listed on its network, and combined for 7.1 million unique visitors.
- Be Smart: The all-cash deal was announced by the companies as RentPath said it would seek chapter 11 bankruptcy protection. RentPath has been struggling financially and recently hired financial advisers to help it restructure more than $650 million of debt.
- Worth Noting: Private-equity firm TPG acquired RentPath in 2011 for $525 million including debt, and Providence Equity subsequently purchased a 50% stake in the firm in 2014.