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Real estate information provider CoStar Group (CSGP) is acquiring spatial data company Matterport, Inc. (MTTR) in a cash and stock deal of about $1.6 billion.
Under the merger terms, CoStar will pay $5.50 per share – $2.75 in cash and $2.75 in stock – for Matterport to harness its spatial data collection solutions that deliver dimensionally accurate, photorealistic virtual tours or “digital twins” for any type of property.
The stock portion of the deal is subject to a collar described as follows in the merger agreement:
(i) if the Average Parent Share Price is greater than or equal to $94.62 (the “Ceiling Price”), then the Exchange Ratio shall be set at 0.02906;
(ii) if the Average Parent Share Price is less than or equal to $77.42 (the “Floor Price”), then the Exchange Ratio shall be set at 0.03552; or
(iii) if the Average Parent Share Price is greater than the Floor Price and less than the Ceiling Price, then the Exchange Ratio shall be equal to the quotient of (x) $2.75 divided by (y) the Average Parent Share Price.
Since the stock part of the deal can vary to keep the value of the stock portion at $2.75 in between the thresholds defined, we are treating this as a special conditions deal with a value of $5.50.
CoStar, which provides online property marketplaces, intends to merge Matterport’s spatial data collection into its marketplaces.
CoStar’s CEO Andy Florance said that “people now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property”, and the merger with Matterport will help them in providing easy access to virtual properties to its customers.
The merger, which is approved by Matterport’s board, is expected to be completed by the end of this year.
For a more detailed analysis, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Matterport, Inc. (MTTR) by CoStar Group, Inc. (CSGP)
Editor’s Note: Baranjot Kaur contributed to this article.
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