CoStar Group Inc - CSGP STOCK NEWS

CoStar Group (NASDAQ: CSGP) clarified its independence from Chinese firm CoStar Group Co., Ltd., which is subject to U.S. investment restrictions due to alleged ties to the defense sector. The announcement follows the Biden Administration's June 2021 Executive Order that included this Chinese company in a list of 59 entities under scrutiny. CoStar Group, founded in 1987, is a leader in commercial real estate data and analytics, maintaining the largest database in the sector and providing comprehensive online services for market insights.

CoStar Group (NASDAQ: CSGP) announced the completion of its $156 million cash acquisition of Homes.com, following FTC approval. This acquisition aims to enhance the online real estate experience for buyers, sellers, and agents by integrating Homes.com with Homesnap, which CoStar acquired in December 2020. CoStar plans to provide a marketplace that connects agents to clients without commission cuts, retaining agents' leads. Homes.com is projected to generate an incremental $10 million in revenue but will incur approximately $15 million in negative adjusted EBITDA for 2021 due to a business model transition.

CoStar Group (NASDAQ:CSGP) reported Q1 2021 revenue of $458 million, a 17% increase from Q1 2020. Net income stood at $74 million ($1.88/share), with non-GAAP net income at $108 million ($2.75/share), reflecting a 20% growth. EBITDA rose 35% to $136 million. CoStar's sales team booked $52 million in net new bookings, a 10% increase year-over-year. The company also raised its 2021 revenue guidance to $1.930-$1.945 billion, anticipating 17% growth. The outlook includes adjusted EBITDA of $645-$655 million for the year, an 18% year-over-year rise.

CoStar Group (NASDAQ: CSGP) has announced a definitive agreement to acquire Homes.com from Dominion Enterprises for $156 million in cash. Homes.com is a prominent residential listing portal serving over 500,000 agents with 5 million monthly visitors and nearly 1.8 million property listings. This acquisition aims to enhance CoStar's offerings by merging Homes.com with its existing platform Homesnap, potentially generating $5-10 million in additional revenue in the latter half of 2021. The deal is expected to close in the first half of 2021, subject to regulatory approval.

CoStar Group (NASDAQ: CSGP) will release its Q1 2021 financial results on April 27, 2021, after market close. A conference call to discuss the results and future outlook is scheduled for 5:00 PM EDT on the same day. The company anticipates announcing its Q2 2021 results on July 27, Q3 results on October 26, and full-year results on February 22, 2022. CoStar is a leading provider of commercial real estate data and analytics, maintaining the largest database in the industry.

CoStar Group (NASDAQ: CSGP) has announced the sublease of an additional 51,000 square feet of office space in Richmond, aimed at supporting over 200 employees. This expansion highlights CoStar's commitment to growth in the region since establishing its headquarters for global research operations in 2016. The new office will enhance local employment and economic vibrancy. Despite trends of businesses reevaluating office footprints, CoStar continues to grow, having recently purchased the Westrock building and planning further expansions.

CoStar Group (NASDAQ: CSGP) has withdrawn its acquisition bid for CoreLogic, citing concerns over rising interest rates impacting the mortgage refinancing market. This decision follows a significant decline in valuations for residential property technology companies. CEO Andrew C. Florance noted that current conditions do not favor aggressive investments in the residential mortgage sector. CoStar acknowledges CoreLogic's value and talent but remains committed to cautious valuation strategies for future acquisitions.

RentPath has reached a settlement with CoStar Group (NASDAQ: CSGP) regarding a $58.75 million break-up fee, with CoStar agreeing to pay $52 million, or 88.5% of the fee, shortly after court approval. This resolution allows RentPath to focus on its upcoming acquisition by Redfin Corp (NASDAQ: RDFN) for $608 million, subject to regulatory approvals. RentPath's CEO describes this as a significant victory, aligning the company with a partner that shares its values and commitment to customer service.

CoStar Group (NASDAQ: CSGP) has proposed to acquire CoreLogic (NYSE: CLGX) for $6.00 per share in cash plus 0.1019 shares of CoStar stock, valuing the deal at approximately $90 to $97 per share. This proposal offers a $17 per share increase over the competing Stone Point and Insight offer, totaling an additional $1.25 billion in value. CoStar asserts that this proposal is superior, providing a 15% premium over CoreLogic's recent closing price and includes $450 million in cash for CoreLogic shareholders. CoStar is prepared to advance the $165 million termination fee of the existing agreement with Stone Point and Insight.