CoStar Group Inc. (NASDAQ: CSGP) has announced its acquisition of the housing data provider Zonda for $800 million in cash.
Zonda serves more than 3,000 customers including residential builders, developers, suppliers, and lenders across North America. The company’s platform supports spanning land acquisition, development planning, homebuilding analytics, construction forecasting, community marketing, operational workflow management, and online new home marketplaces. Zonda also operates NewHomeSource and Livabl, two online new home marketplaces in the US and Canada.
According to the companies, most of Zonda’s revenue is subscription-based, with a 104% net customer retention. The acquisition is the latest brand to be added to CoStar Group’s operations, which also includes the CoStar of commercial real estate data and news site, LoopNet, Apartments.com, Homes.com, Matterport, STR, Ten-X, the Australian property marketplace Domain, and the UK property portal OnTheMarket.
“Zonda has built an extraordinary business with deep relationships across the homebuilding industry and one of the most valuable proprietary datasets in new home real estate,” said Andy Florance, founder and CEO of CoStar Group. “This acquisition extends CoStar Group’s leadership into a major new segment of the real estate industry and strengthens our ability to provide clients with comprehensive information solutions across every major real estate segment. We believe the combination will deliver deeper insights, workflow efficiencies, and analytics to the homebuilding industry, while strengthening our core information offerings and significantly expanding our new home marketplace capabilities.”
Sara Badham, managing director at Zonda’s parent company MidOcean Partners, added, “With Zonda’s visionary management team, we set out to create the preeminent platform for data, insights and technology across the residential housing ecosystem. We continually invested behind that vision, in strategic acquisitions, technology, product and talent. Zonda is a trusted partner to its customers and a trusted source of intelligence across the market. We are incredibly proud of what we have built together with the Zonda team and we look forward to watching the company’s continued success as part of CoStar Group.”
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