CoStar Group reached a definitive agreement to acquire the US and Canada’s real estate marketplace Homes.com, a division of Dominion Enterprises, for $156 million in cash.
Homes.com supports over 500,000 residential agents and brokers in the home sale process and approximately 5 million people who visit the website each month. The platform has around 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. 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,” said Andrew C. Florance, founder and CEO of CoStar Group.
The transaction is expected to close in the first half of 2021, which is subject to customary closing conditions and regulatory review.
“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,” said Dave Mele, president of Homes.com.
CoStar Group believes that this acquisition will contribute approximately $5-10 million in incremental revenue to CoStar Group in the second half of 2021.
Recently, CoStar Group tried to acquire the real estate data company CoreLogic, but withdraw its bid, after raising it to times to beat the competition, private equity firms Stone Point Capital and Insight Partners, as MarketplaceDaily reported.