Acquisition of Homes.com Expands CoStar’s Effort to Provide Digital Tools and Advertising Solutions That Support Residential Real Estate Agents and Their Customers
CoStar Group, Inc. (NASDAQ: CSGP), a provider of commercial real estate information, analytics and online marketplaces, announced yesterday that it’s reached a definitive agreement to acquire Homes.com, a division of Dominion Enterprises, for $156 million in cash.
Homes.com is a residential property listing and marketing portal that supports over 500,000 residential agents and brokers in the home sale process. Approximately 5 million people visit the Homes.com website each month to search nearly 1.8 million residential property listings. Homes.com provides advertising and marketing services to residential brokers and agents based on listing feeds that cover more than 90% of all Multiple Listing Services (MLS) subscribers in the United States.
“We believe that the acquisition of Homes.com is highly complementary alongside Homesnap, the industry-leading workflow and marketing platform for residential real estate agents that we acquired in December last year,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. The combination of Homes.com’s online portal and consumer traffic with Homesnap’s powerful mobile tools and highly effective agent marketing solutions has the potential to create a differentiated service that uniquely focuses on selling a house faster and at a better price, rather than just trying to take agent fees.”
“The team and I are looking forward to working with our new colleagues at CoStar,” said Dave Mele, President of Homes.com. “Together we will be dedicated to growing the Homes.com brand and building innovative solutions that expand the marketing options available to consumers and their agents.”
The transaction is expected to close in the first half of 2021, subject to customary closing conditions and regulatory review. We anticipate the acquisition will contribute approximately $5-10 million in incremental revenue to CoStar Group in the second half of 2021, subject to transaction timing. CoStar Group plans to provide additional information about the Homes.com acquisition during the first quarter 2021 financial results conference call scheduled for April 27, 2021.
