CoStar Group , Inc., one of the world’s largest providers of commercial real-estate information and analytics, has taken its first major step into the residential data business by agreeing to pay $250 million for Homesnap Inc.
Founded in 2012, Homesnap is a fast-growing company that provides residential real-estate brokers with apps and other technology for managing and analyzing their listings as well as the broader market. About 300,000 residential agents use it an average of 30 times a month.
The all-cash acquisition is expected to close later this year, CoStar said Sunday.
Headquartered in Washington, D.C., CoStar has been on an acquisition binge in recent years. Buying Bethesda, Md.-based Homesnap would be a relatively small deal for the powerhouse in offices, hotels, apartments and other types of commercial property. CoStar had $1.4 billion of revenue last year.
But the single-family home business, which dwarfs the size of the commercial property market, represents a new front for CoStar. The 33-year-old company, which collects data in over 120 countries and operates online marketplaces, typically makes more than one acquisition when it expands into a new property type.