PropTech Swoop - OnTheMarket’s new owner snaps up Matterport

CoStar Group, the US-based global online real estate provider which acquired OnTheMarket in December, has now snapped up Matterport, the well known 3D capture and spatial data company used by many agents.

It’s a cash and stock transaction valued at $5.50 per share reflecting an estimated $1.6 billion of enterprise value for Matterport. 

Founded in 2011, Matterport pioneered the development of virtual tours, which have become popular in recent years and gained considerable traction during lockdown periods. Globally, Matterport's 3D technology is used in nearly every sector of real estate including residential, commercial, hospitality, retail, and industrial areas.

The deal is subject to Matterport shareholders’ approval and is expected to be formalised later this year.

However, figures at the head of the two companies are already celebrating.

Andy Florance, founder and chief executive of CoStar Group, says: “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.”

And RJ Pittman, chair and chief executive of Matterport, comments: “We are thrilled to join forces with Costar Group, a long-standing customer and partner with a shared vision for transforming global real estate through technology and digitization. This transaction is another significant milestone that acknowledges the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence. 

“With CoStar Group's expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide. Importantly, it offers Matterport's stockholders the opportunity to participate in the value creation and future growth prospects of our combined efforts.”