“CoStar … has withdrawn its bid to acquire CoreLogic and terminate[d] any further acquisition discussions,” CoStar said in a statement.
“[It] believes rising interest rates will negatively impact the outlook for the mortgage refinancing market. Accordingly, these rising interest rates have caused valuations for residential property technology companies to decline significantly in recent weeks, which has changed CoStar’s view of the value of CoreLogic.”
CoStar Chief Executive Andre Florance said, “With interest rates moving up, now is not the time for us to aggressively buy into the residential mortgage market.”
The 10-year Treasury yield has climbed to 1.59% from 0.72% six months ago.
CoStar recently traded at $802, up 5.7%, and CoreLogic at $78.90, down 3.5%.
On Thursday, CoreLogic said that a revised bid from CoStar isn’t superior to a deal that CoreLogic agreed with investment firms Stone Point Capital and Insight Partners.
On Feb. 16, CoStar Group bid for the company, offering about $7 billion in stock, while the investment firms offered $5.8 billion in cash and stock.
In the revised bid, CoreLogic holders would have received $6 a share cash and 0.1019 share of CoStar for each of their shares.
Florance said in a March 1 letter that CoStar’s latest proposal represented a $1.25 billion improvement over the Stone Point-Insight offer, Bloomberg reported.
But CoreLogic's board unanimously agreed that the proposal needed further improvement, CoreLogic CEO Frank Martell said in a letter seen by Bloomberg.