CoStar closes $1.6B purchase of Matterport

Roughly 10 months after it first announced the planned deal, CoStar Group said Friday that it has completed its acquisition of 3D digital mapping technology firm Matterport. CoStar paid $1.6 billion for the acquisition. 

“Matterport’s cutting-edge 3D capture and AI-powered property insights have already transformed how residential and commercial properties are marketed and experienced,” Andy Florance, the founder and CEO of CoStar Group, said in a statement.

“By integrating Matterport’s groundbreaking digital twin technology with our vast property data and online marketplaces, we are creating an unparalleled solution for buyers, sellers, and renters to explore properties with greater depth and insight than ever before.”

According to a press release, Matterport has mapped more than 14 million spaces in 177 countries.

“This is an exciting milestone for Matterport, as we join forces with CoStar Group to accelerate our impact on the global real estate industry,” RJ Pittman, the chairman and CEO of Matterport, said in a statement. “With CoStar Group’s scale and resources, we can fast-track innovation, deepen AI-driven analytics, and deliver even greater value to our customers worldwide.”

Looking ahead, the companies said they are committed to further investments in artificial intelligence, computer vision and machine learning. They believe these tools will help them and the professionals who utilize their tools to improve property analytics and optimize operations.

CoStar Group generated $2.74 billion in revenue in 2024, up 11% annually, but its net income fell from $375 million to $139 million during the year. The firm’s residential North American network generated $58.9 million in revenue in 2024. Its multifamily segment, which brought in $1.1 billion, was its largest revenue source in 2024.