CoStar to buy Matterport in $1.6bn deal

Under the terms of the agreement, Matterport stockholders will receive $2.75 in cash and $2.75 in shares for each of their shares.

Founded in 2011, Matterport pioneered the development of the first 3D capture solution to deliver dimensionally accurate, photorealistic virtual tours or "digital twins" for any type of property.

The company’s proprietary and patented technology enables anyone to digitise a property using a variety of camera technologies including cameras found on most smartphones. It also produces a line of 3D capture devices, including the company’s flagship LiDAR-based Pro3 camera which is capable of high-precision indoor and outdoor capture.

Andy Florance, founder and chief executive of CoStar Group, said: "CoStar Group and Matterport have nearly identical mission statements of digitizing the world’s real estate. I look forward to welcoming Matterport to the CoStar Group family and believe that we will be stronger together, in pursuit of our common mission.

"The world has changed and today a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property. There is no better way to remotely experience space than via Matterport.

"CoStar Group intends to support and invest in research and development opportunities to further develop Matterport’s spatial technology, including the application of AI and machine learning to extract information from the 3D spatial data library as well as using generative artificial intelligence to imagine and reimagine physical spaces."