CoStar Group to Acquire Visual Lease, a Leading Lease Administration and Accounting Platform

Rhea-AI Summary

CoStar Group (NASDAQ: CSGP) has announced a definitive agreement to acquire Visual Lease, a leading lease administration and accounting platform. This strategic acquisition will enhance CoStar's Real Estate Manager business line and provide additional lease management and accounting value to corporations of all sizes. Visual Lease, founded in 1996, serves over 1,500 organizations across various sectors.

The combination aims to create a more comprehensive service offering by integrating CoStar Group's industry expertise with Visual Lease's diverse customer base and lease portfolio management expertise. The acquisition is expected to enhance functionality for businesses of all sizes and increase integration opportunities with key technology partners.

CoStar Group plans to provide additional information about the Visual Lease acquisition during its earnings conference call on October 22, 2024.

Positive

• Acquisition of Visual Lease expands CoStar's product offerings in lease management and accounting
• Enhances functionality for businesses of all sizes in lease administration and accounting
• Increases integration opportunities with key technology partners
• Expands customer base with Visual Lease's 1,500+ organizations across various sectors
• Potential for growth in national and international markets

Negative

• None.

Insights

Financial Analyst

CoStar Group's acquisition of Visual Lease is a strategic move that significantly enhances its Real Estate Manager business line. This deal expands CoStar's product offerings in lease management and accounting, potentially increasing its market share and revenue streams. The integration of Visual Lease's 1,500+ client base with CoStar's existing portfolio could lead to substantial cross-selling opportunities. Moreover, the combined entity's enhanced capabilities in lease lifecycle management, coupled with CoStar's data and analytics prowess, position it strongly in the competitive real estate software market. While financial terms weren't disclosed, this acquisition likely represents a significant investment for CoStar, with potential for long-term growth and increased shareholder value. Investors should watch for synergies, integration costs and the impact on CoStar's financials in upcoming quarters.

Tech Expert

This acquisition marks a significant technological advancement for CoStar Group. By integrating Visual Lease's platform, which supports various teams managing leased and owned assets, CoStar is poised to offer a more comprehensive, end-to-end solution. The merger of CoStar's data analytics with Visual Lease's lease management expertise could result in more powerful, AI-driven insights for clients. Additionally, the mention of enhanced relationships with key real estate and accounting service providers suggests potential for broader API integrations and a more robust ecosystem. This could lead to increased stickiness of CoStar's products and higher barriers to entry for competitors. The focus on sustainability solutions also aligns with growing ESG trends in real estate technology, potentially opening new market opportunities.

Visual Lease will become part of the CoStar Real Estate Manager platform, expanding both platforms’ product lines and extending solutions for their customers

WASHINGTON--(BUSINESS WIRE)-- CoStar Group (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics in the property markets, announced today that it has reached a definitive agreement to acquire Visual Lease. The strategic acquisition will enhance CoStar Group’s Real Estate Manager business line and provide additional lease management and lease accounting value to corporations of all sizes.

Founded in 1996, Visual Lease is a premier software platform for integrated lease management, accounting, and reporting, used by over 1,500 organizations across the business services, construction, healthcare, manufacturing, and retail sectors. Visual Lease offers support for each team involved in managing a company’s leased and owned assets through a seamless platform that encourages strategic financial and operational outcomes for organizations.

CoStar Real Estate Manager helps customers across the globe manage every phase of the lease lifecycle, providing vital lease administration, lease accounting compliance, and transaction management applications, ensuring seamless workflows between real estate and accounting teams.

This strategic acquisition will enhance functionality for businesses of all sizes by providing industry leading lease management and accounting solutions coupled with the power of CoStar’s data and analytics. The combination will also enhance relationships with key real estate and accounting service providers and increase integration opportunities with key technology partners.

“Visual Lease and CoStar Real Estate Manager are driven by the same mission of integrating all lease management portfolio functions into one user-friendly platform. Bringing Visual Lease into the CoStar Group family will allow us to create the best possible experience for our customers,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “By combining CoStar Group’s industry expertise with Visual Lease’s diverse customer base, deep lease portfolio management expertise, and leading sustainability solutions, we are well positioned to offer a more comprehensive service offering and continue growing both nationally and internationally. I look forward to welcoming the Visual Lease team to CoStar Group and working together to develop new capabilities to better serve our clients.”

“This marks an exciting new chapter for Visual Lease,” said Marc Betesh, Founder & Executive Chairman of Visual Lease. “This partnership with CoStar Group will allow us to propel our vision to even higher levels. I am incredibly proud of everything we have achieved since we began on this journey almost 30 years ago and am excited for all that is ahead.”

“From its inception, Visual Lease has focused on helping companies optimize the value of their lease portfolios. This moment and next step forward with CoStar Group is a testament to our team’s dedication to this mission. Joining forces with CoStar Group will accelerate our growth, expand our offerings, and even further enhance how we serve our customers,” said Robert Michlewicz, Chief Executive Officer of Visual Lease.

Citi served as exclusive financial advisor to CoStar Group on the transaction and Milbank LLP served as its legal advisor. Shea & Company, LLC served as exclusive financial advisor to Visual Lease and Latham & Watkins LLP served as its legal advisor.

Visual Lease is backed by Spectrum Equity and Growth Street Partners.

CoStar Group plans to provide additional information about the Visual Lease acquisition during its earnings conference call at 5:00pm ET on October 22, 2024.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over thirteen million average monthly unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

About Visual Lease (VL)

Visual Lease (VL) is a premier platform for integrated lease management and lease accounting, trusted by enterprises worldwide to navigate complex portfolios with precision and ease. As the centralized system of record for all lease-related financial, operational, and legal data, VL is purpose-built to support every team involved in managing a company’s leased and owned assets. Informed by nearly three decades of experience, our platform integrates lease management, lease accounting, and sustainability reporting, enabling organizations to save time, mitigate risks, reduce costs, and support sustainability initiatives. Our award-winning software is used by 1,500+ organizations to manage more than 1 million real estate, equipment, and other leased asset records globally. For more information, visit visuallease.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241022787831/en/

Investor Relations Contact

Rich Simonelli

CoStar Group

(973) 896-8184

getrich@costar.com

News Media Contact

Matthew Blocher

CoStar Group

(202) 346-6775

mblocher@costargroup.com

Source: CoStar Group

FAQ

What company is CoStar Group (CSGP) acquiring?

CoStar Group (NASDAQ: CSGP) is acquiring Visual Lease, a leading lease administration and accounting platform.

How will the acquisition of Visual Lease benefit CoStar Group (CSGP)?

The acquisition will enhance CoStar's Real Estate Manager business line, expand product offerings, and provide additional lease management and accounting value to corporations of all sizes.

When will CoStar Group (CSGP) provide more information about the Visual Lease acquisition?

CoStar Group plans to provide additional information about the Visual Lease acquisition during its earnings conference call on October 22, 2024.

How many organizations does Visual Lease currently serve?

Visual Lease currently serves over 1,500 organizations across various sectors including business services, construction, healthcare, manufacturing, and retail.