CoStar Group has reached an agreement to buy residential property listing site Homes.com for a total of $156 million in cash, the company announced. The site boasts 5 million visitors per month and nearly 1.8 million residential property listings.
Software is the greatest vacuum for data collection: The data giant plans to combine the company with Homesnap, a workflow and marketing platform for residential real estate agents that CoStar acquired in December.
Revenue: The acquisition of Homes.com is expected to contribute approximately $5 to $10 million in incremental revenue to the data giant in the second half of 2021. CoStar is expected to close on the transaction in the first half of 2021.
Getting too big for its own good: Regulatory problems will be a part of CoStar’s future, but this deal isn’t in jeopardy. Just this past January, RentPath cancelled its $588 million deal to be acquired by the data giant after the Federal Trade Commission (FTC) sued to block the sale. The complaint alleged that 70 percent of apartment complexes with 200 or more units and 40 percent of buildings with 100 to 199 units advertise on internet listing services operated by CoStar or RentPath.
Heard on the Street: CoStar’s CEO Andrew C. Florance: “We believe that the acquisition of Homes.com is highly complementary alongside Homesnap, the industry-leading workflow and marketing platform for residential real estate agents that we acquired in December last year. The combination of Homes.com’s online portal and consumer traffic with Homesnap’s powerful mobile tools and highly effective agent marketing solutions has the potential to create a differentiated service that uniquely focuses on selling a house faster and at a better price, rather than just trying to take agent fees.” [PR]