CoStar Group announces deal to buy LoopNet for $860 million
- April 28, 2011
CoStar Group Inc., a Washington, D.C.–based commercial real estate research firm, has entered into an agreement to acquire LoopNet Inc. of San Francisco for $860 million.
The deal will double the number of CoStar’s paid subscribers to 160,000 and boost its active listings to 2 million.
“CoStar revolutionized how the industry researches commercial real estate and LoopNet revolutionized the way the industry markets commercial real estate,” Andrew C. Florance, president and CEO of CoStar, said in a statement. “We expect the combination of our companies to give the $11 trillion commercial real estate market the full benefit of the Internet.”
CoStar operates the largest commercial real estate information database in the country with more than 77 billion square feet of office, retail, and industrial inventory, 1.5 million listings and 10.6 million images.
LoopNet.com is the industry’s largest and most heavily trafficked online marketplace with 4.8 million registered members and more than 6 million unique visitors quarterly, according to Google Analytics. At a time when more brokers are putting listings online, LoopNet also has been the leading website for marketing commercial property listings.
The boards of directors of both companies have unanimously approved the transaction, expected to close by the end of 2011. Based upon first quarter earnings, the combined companies would have annualized revenue of about $321 million.
CoStar said it will fund the deal with a $415 million loan and a $50 million revolving credit facility from J. P. Morgan.