(Photo via @Homesnap on Twitter)
D.C.-based The CoStar Group, a commercial real estate information and analytics provider, has entered into an agreement to acquire Bethesda, Maryland-based real estate tech company Homesnap for $250 million in cash.
Eight-year-old Homesnap curates a website and mobile app that lets you find out more about the real estate info of a property after snapping a photo of it. The company reports that more than 300,000 agents across the U.S. are using its platform an average of 30 times per month. Homesnap’s 150-person team will join CoStar; the companies didn’t disclose any immediate leadership changes.
“Homesnap has great relationships, data, software, and tools for residential real estate professionals that are complementary to our existing offerings,” said CoStar Group founder and CEO Andy Florance in a statement. “Our goal is to make these enhanced capabilities available to all of our audiences.”
With this addition of Homesnap’s offerings, there will be more than 400,000 agents using CoStar-branded tech in the real estate market, per the company. Property listings on CoStar’s platforms will also expand from 1.35 million to more than 2.6 million in the U.S.
“A very large percentage of CoStar’s clients such as investors, banks, government agencies, appraisers, suppliers, and brokerage firms are active in both commercial and residential real estate, so we believe that they would welcome a more comprehensive solution for their needs across all real estate segments,” Florance explained.
The acquisition deal is expected to close by the end of 2020. Despite the pandemic, Homesnap is on track to make approximately $40 million in revenue this year, and the real estate tech company ranked #510 on the 2020 Inc. 5000 list earlier this year for being one of the fastest-growing private companies in the U.S. Homesnap has raised $32 million in venture capital since its inception, including a $14 million Series B in early 2018.
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