– Matterport acquired by customer Costar in cash-and-stock deal valued at $1.6 billion
– Premium of 212% offered over Matterport’s previous closing share price before deal announcement
– Costar plans to incorporate Matterport’s virtual tours into its real estate marketplaces to enhance user experience and promote their brands
Digital twin platform Matterport has agreed to be acquired by its customer, Costar, in a cash-and-stock deal worth $1.6 billion. Matterport’s technology helps create digital replicas of physical spaces. The offer represents a 212% premium over Matterport’s previous closing share price, signaling a fortunate turn of events for the struggling company.
Despite efforts to improve profitability, investors have been unhappy with Matterport, whose shares have been trading below expectations since going public via a SPAC deal in 2021. The deal with Costar, which has a market cap of $34.84 billion, is seen as beneficial for both parties, with Costar investors showing positivity towards the acquisition.
Matterport’s rise to prominence began in 2011, offering 3D imaging cameras and virtual tours in the real estate space. The company’s ability to adapt and diversify its offerings, including AI-powered solutions like Cortex, has contributed to its success. Costar plans to leverage Matterport’s technology on platforms like Apartments.com and Homes.com to enhance user experiences.
The acquisition is not without regulatory risks, as seen in Costar’s failed attempt to acquire RentPath in 2020 due to an FTC antitrust lawsuit. Despite this, there is potential for Matterport to expand beyond real estate, with partnerships like its collaboration with Facebook to train robots in virtual environments. The future of Matterport under Costar’s ownership remains to be seen.