Transaction Will Create Online Leader in Commercial Real Estate's $2 Trillion Multifamily Asset Class by Combining CoStar Group's Leading Information Solutions With Apartments.com's Leading Marketplace
CoStar's Management to Hold Conference Call at 8:30 a.m. Today to Discuss the Acquisition
WASHINGTON, March 3, 2014 (GLOBE NEWSWIRE) -- CoStar Group, Inc. (Nasdaq:CSGP), the leading provider of commercial real estate information, analytics and marketplaces, today announced it has signed an agreement to acquire Apartments.com ("Apartments"), a division of Classified Ventures, LLC, for $585 million in cash. Apartments is a premier online apartment rentals resource for renters, property managers and owners. The boards of directors of CoStar Group, Inc. and Classified Ventures, LLC have unanimously approved the transaction, which is expected to close in the second quarter of 2014.In 2013, Apartments had unaudited revenue of approximately $86 million and unaudited adjusted EBITDA of $28 million, for an adjusted EBITDA margin of approximately 33%. CoStar Group expects annual synergies of approximately $20 million from cross-selling and cost efficiencies over the 24 months following the close of the transaction. The Company achieved strong synergies from its LoopNet acquisition. Apartments provides a national, online resource that matches apartment seekers with great apartments. In addition to Apartments, the business operates ApartmentHomeLiving.com and RentalHomesPlus.com. In 2013, the three sites generated 114 million visits and an average of 7 million unique monthly visitors. "In much the same way LoopNet revolutionized how owners and brokers market the commercial real estate sectors of office, industrial and retail, Apartments has transformed the way owners and property managers market their commercial real estate's apartment buildings, moving them from the classified ads section of Classified Ventures owners' newspapers to more effective online advertising," stated CoStar Group Founder and Chief Executive Officer Andrew C. Florance. Apartments customers receive cost effective, targeted marketing solutions that effectively drive measurable exposure, high-quality traffic and leads to their businesses.