CoStar Completes $1.6 Billion Matterport Acquisition

CoStar Group has completed its acquisition of digital twin and spatial data specialist Matterport for $1.6 billion.

The capture of Matterport, announced last year, is a major coup for CoStar, itself a data-friendly business that has incorporated vast layers of real estate data into real estate marketplaces such as Homes.com. The companies had a longstanding relationship before the deal, with CoStar being one of Matterport’s biggest clients.

CoStar CEO Andy Florance echoed this sentiment in his comments after the takeover completed:

"CoStar Group and Matterport have long shared a vision of digitizing the real estate industry, and today, we officially unite to realize that future together.

“Matterport’s cutting-edge 3D capture and AI-powered property insights have already transformed how residential and commercial properties are marketed and experienced. By integrating Matterport’s groundbreaking digital twin technology with our vast property data and online marketplaces, we are creating an unparalleled solution for buyers, sellers, and renters to explore properties with greater depth and insight than ever before."

RJ Pittman, Chairman and CEO of Matterport, said:

"This is an exciting milestone for Matterport, as we join forces with CoStar Group to accelerate our impact on the global real estate industry.

"From residential to commercial, our technology is redefining how residential and commercial spaces are discovered, marketed, and transacted. With CoStar Group’s scale and resources, we can fast-track innovation, deepen AI-driven analytics, and deliver even greater value to our customers worldwide."

Additionally, CoStar commented:

The opportunity ahead is vast—there are more than four billion residential and commercial buildings on the planet, roughly twice as many as there are websites on the internet today. Yet, the vast majority of these spaces remain largely undigitized. With the property sector representing a $327 trillion asset class—the largest in the world by several times—the need for accurate, data-driven insights has never been greater.

CoStar and Matterport both released their latest financial filings last week.

CoStar continued its impressive run of achieving double-digit revenue growth (both quarter-on-quarter and year-on-year) despite falling profitability as a result of increased marketing spend.

Meanwhile, Matterport lost $256 million in 2024 despite a nice uptick in revenues. One of CoStar's biggest challenges for Matterport will be to give the business a global platform while also trimming a relentlessly heavy cost base.

With one major acquisition closed, CoStar will now invariably turn its attention to Australia, where it has embarked on an ambitious takeover of the country's number two portal Domain for $1.7 billion—with a source close to the deal telling Online Marketplaces that CoStar believes Domain can be a leader in Australia.