CoStar Group Withdraws Bid to Acquire CoreLogic
March 04 2021 - 4:03PM
Business Wire
Impact of Rising Interest Rates on Mortgage and
Housing Markets Changes View on Valuation
Today, CoStar Group, Inc. (NASDAQ: CSGP) announced that it has
withdrawn its bid to acquire CoreLogic and terminate any further
acquisition discussions. CoStar Group believes rising interest
rates will negatively impact the outlook for the mortgage
refinancing market. Accordingly, these rising interest rates have
caused valuations for residential property technology companies to
decline significantly in recent weeks, which has changed CoStar’s
view of the value of CoreLogic. “With interest rates moving up, now
is not the time for us to aggressively buy into the residential
mortgage market,” said Andrew C. Florance, Founder and Chief
Executive Officer of CoStar Group.
CoStar Group continues to believe that a strategic combination
of CoStar and CoreLogic had the potential to create significant
value for all shareholders, and that CoreLogic is an excellent
company with a talented team. CoStar Group is committed, however,
to maintaining its disciplined approach to valuation as it pursues
strategic acquisitions.
Mr. Florance continued, “We wish to congratulate Stone Point and
Insight Partners on their successful bid to acquire CoreLogic. We
thank the CoreLogic Board and management team for including us in
the process and congratulate them on achieving a strong valuation
for their shareholders.”
About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of
commercial real estate information, analytics and online
marketplaces. Founded in 1987, CoStar conducts expansive, ongoing
research to produce and maintain the largest and most comprehensive
database of commercial real estate information. Our suite of online
services enables clients to analyze, interpret and gain unmatched
insight on commercial property values, market conditions and
current availabilities. STR provides premium data benchmarking,
analytics and marketplace insights for the global hospitality
sector. Ten-X provides a leading platform for conducting commercial
real estate online auctions and negotiated bids. LoopNet is the
most heavily trafficked commercial real estate marketplace online.
Realla is the UK’s most comprehensive commercial property digital
marketplace. Apartments.com, ApartmentFinder.com, ForRent.com,
ApartmentHomeLiving.com, Westside Rentals, AFTER55.com,
CorporateHousing.com, ForRentUniversity.com and Apartamentos.com
form the premier online apartment resource for renters seeking
great apartment homes and provide property managers and owners a
proven platform for marketing their properties. Homesnap is an
industry-leading online and mobile software platform that provides
user-friendly applications to optimize residential real estate
agent workflow and reinforce the agent-client relationship. CoStar
Group’s websites attract tens of millions of unique monthly
visitors. Headquartered in Washington, DC, CoStar maintains offices
throughout the U.S. and in Europe, Canada and Asia with a staff of
over 4,600 worldwide, including the industry’s largest professional
research organization. For more information, visit
CoStarGroup.com.
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about CoStar's plans, objectives, expectations, beliefs and
intentions and other statements including words such as “hope,”
“anticipate,” “may,” “believe,” “expect,” “intend,” “will,”
“should,” “plan,” “estimate,” “predict,” “continue” and “potential”
or the negative of these terms or other comparable terminology.
Such statements are based upon the current beliefs and expectations
of management of CoStar and are subject to many risks and
uncertainties. Actual results may differ materially from the
results anticipated in the forward-looking statements and the
assumptions and estimates used as a basis for the forward-looking
statements. The following factors, among others, could cause or
contribute to such differences: uncertainty surrounding interest
rates and the risk that the effect of rising interest rates on the
mortgage refinancing market differs from expectations. More
information about potential factors that could cause results to
differ materially from those anticipated in the forward-looking
statements include, but are not limited to, those stated in
CoStar’s filings from time to time with the Securities and Exchange
Commission, including in CoStar’s Annual Report on Form 10-K for
the year ended December 31, 2020, which is filed with the SEC,
including in the “Risk Factors” section of that filing, as well as
CoStar’s other filings with the SEC available at the SEC’s website
(www.sec.gov). All forward-looking statements are based on
information available to CoStar on the date hereof, and CoStar
assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210304006077/en/
CoStar Group
Investor Contacts Scott Wheeler Chief Financial Officer
(202) 336-6920 swheeler@costar.com
Bill Warmington Investor Relations (202) 346-5661
wwarmington@costar.com
Media Contact Matthew Blocher Marketing &
Communications (202) 346-6775 mblocher@costar.com
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