Shares of CoStar Group, Inc. (NASDAQ: CSGP) plunged 1.16% on Wednesday’s trading session. The firm has lost -10.47 after it disclosed that it has inked an agreement with Homes.com. As per the new agreement, CoStar will buy Homes.com for $156 million in cash.
Homes.com has gained popularity property listing and advertising portal that back over 500,000 residential agents and brokers in the home sale process. Homes.com offers promotions and selling services to residential brokers and agents depending on listing feeds that include more than 90% of all Multiple Listing Services (MLS) subscribers throughout the US.
The firm has disclosed that the existing residential listing sites Florance do not offer the best services to the homeowners or their agents as they concentrate on selling ads on top of agent listings and more and more provides rival brokerage services.
The deal is anticipated to execute in the first half of 2021. The execution of the deal is dependent on closing conditions and supervisory review. The firm is expecting that the buying of Homes.com will add nearly $5-10 million in revenue growth to CoStar Group in the second half of 2021, dependent on the deal timing.
CoStar Group has also disclosed its intent to offer extra information about the Homes.com buying during the first quarter 2021 financial results conference call. The conference call is planned for April 27, 2021.