RentPath Announces Settlement of Break-Up Fee Litigation

Rhea-AI Summary

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.

Positive

• RentPath to receive $52 million from CoStar, nearly 89% of the break-up fee.
• Successful acquisition agreement with Redfin for $608 million.

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• None.

ATLANTA, March 4, 2021 /PRNewswire/ -- RentPath announced today that a settlement agreement has been reached with CoStar Group, Inc. (NASDAQ: CSGP) ("CoStar"), fully resolving the litigation in the United States Bankruptcy Court of the District of Delaware ("the Court") regarding CoStar's obligation to pay RentPath a $58,750,000 break-up fee under the terms of their terminated transaction agreement. Under the terms of the settlement agreement, which were approved by the Court today, CoStar will pay RentPath $52,000,000, which is 88.5% of the break-up fee, within two business days of the Court's approval.

As previously disclosed on February 19, 2021, Redfin Corp. (NASDAQ: RDFN) has entered into an agreement to acquire RentPath for $608,000,000 in cash, subject to certain customary antitrust and bankruptcy court approvals.

"It's a total grand slam for RentPath and our employees; in the space of a few days, we have reached an agreement to be acquired by Redfin for a higher price," said Dhiren Fonseca, RentPath's CEO. "In Redfin we now have a partner who we know we can trust, who shares our values and moral ethic, and whose commitment to delivering value to customers is aligned with our DNA. RentPath has always represented the best partner for multifamily communities and an employer of choice in our industry. $52,000,000 is a lot of money, and CoStar shareholders and customers should be asking themselves, who ultimately will be stuck with that bill. We are now free to focus on what matters most – serving our customers and beating our competition."

About RentPath:

RentPath is a leading digital marketing solutions company that empowers millions nationwide to find apartments and houses for rent. Through its brands, RentPath continues to simplify the rental search experience while driving quality advertiser leads that result in occupancies and a high return on investment. With powerful online and mobile solutions that provide prospective renters with the information and tools they need, RentPath connects consumers with a home that reflects their personal lifestyles. If you need help finding great tenants for your community or property, please find us at www.rentpath.com/get-started/. 

RentPath helps people navigate the rental journey by providing a delightful, stress-free experience so that all renters find and enjoy their ideal home. If you're interested in finding a home, visit us at www.apartmentguide.com, www.rent.com, or www.rentals.com.

View original content:http://www.prnewswire.com/news-releases/rentpath-announces-settlement-of-break-up-fee-litigation-301240984.html

SOURCE RentPath Holdings, Inc.

FAQ

What is the settlement amount RentPath will receive from CoStar?

RentPath will receive $52 million from CoStar as part of the settlement.

What was the original break-up fee amount agreed upon with CoStar?

The original break-up fee was $58.75 million.

When was the settlement with CoStar approved?

The settlement was approved on March 4, 2021.

Who is acquiring RentPath and for how much?

RentPath is being acquired by Redfin Corp for $608 million.

What percentage of the break-up fee is CoStar paying to RentPath?

CoStar is paying 88.5% of the break-up fee to RentPath.

When will RentPath receive the payment from CoStar?

RentPath will receive the payment within two business days of court approval.