CoStar Group said on Monday it would buy 3D virtual tour creator Matterport in a cash-and-stock deal valued atUS$1.6 billion, as the real estate information provider looks to boost digitisation and user experience.
The deal implies a per-share value of US$5.50 and represents a premium of about 216 per cent over Matterport's last close of US$1.74.
Shares of Matterport more than doubled to US$4.67 while CoStar Group edged up about 0.9 per cent at US$84.94 in early trading.
Sunnyvale, California-based Matterport, which was founded in 2011, makes 3D cameras for virtual tours of real estate. It also offers a platform that allows users to upload and view the spaces they have scanned.
"Matterport is the new open house or property tour. People now select their next home, apartment...on their mobile device often without ever visiting the property," said CoStar CEO Andy Florance.
Matterport has about 440 employees and its 2023 revenue rose 16 per cent from a year earlier to US$158 million.
CoStar, which is scheduled to report its first-quarter financial results on Tuesday, said the deal is expected to be completed this year.